There will be no further price reductions. 

In addition to the increased leasing you up existing rents, reduce expenses, go for property tax reductions if possible etc. to push overall yield.Also what is the stated cap rate being underwritten at?

None of that is going to fit with debt reduction.

This cost us money as days on market (DOM) grow and eventually a price reduction becomes necessary to sell the house.

If you don't have a recent arms length transaction, or the hearing is expected to be contested because you're asking for a large reduction in value, you can hire an appraiser to prepare an assessment of value and testify on your behalf.

(and "should", I dare say).It follows therefore, that all expenses can (and should) be knowable as a percentage reduction, from 100% Income.Yes, it'll be different percentages depending on the overall age and value of the property, but so what?

Principal Reduction & Depreciation is way down on the line when underwriting these deals... like almost the tail waging the dog or never get's look (unless its a long term hold play) but still, down the line.   

. $4,200/yr in mortgage principal reduction)Amount spent on repairs: $15,000 (majority spent on new HVAC/duct system and appliances)CoC return: 20.6%I think that covers most of the relevant numbers.  

You may have an estimate of $15,000 and ask for a $10,000 reduction in price. 

Everyone will have huge reductions in cash flow and likely resulting property devaluation.