In SFO as housing cools off slightly, the tenant demand a rent reduction is often met.

A person just has to assess whether appreciation+principal reduction can offset transaction inefficiencies to decide whether owning a primary is an asset or a liability vs alternative use of the money.

Occupancy %, turnover costs, rent reductions. 

Given the inspection findings, you have a basis to renegotiate the purchase price or request seller concessions, such as a price reduction or credits at closing to cover repair costs as well.To do a proper analysis on whether the purchase is worth it, you'd need to calculate the expected rent after repairs and the ARV.

.- Price reductions for existing homes are happening, nationwide nearly 39% of homes listed for sale will reduce their price.

If you are already in a VA loan you can take advantage of the VA IRRRL (Interest Rate Reduction Refinance Loan).

Am I unreasonable in asking for a 5K reduction?

Do I just need to take a tough pill and consider units with long term tenants that would need to be evicted in order to BRRRR? 

Atthe Great Recession (GR), there were many markets that suffered increased vacancy and reduction in rents.

What are you pilling from in terms of potential prospective tenants?