That said, I still pay about $1k/mo out of pocket(including utilities for the building) to live in my 3 family BUT that same 1k is the exact amount of principal reduction per month.

If neither of them want you to pay them off fully, you could possibly pay them for example $20,000, but obtain a reduction in principal balance greater than that, say $22,000.

If you look at the cashflow, tax savings, appreciation, and principal reduction and you're still in the red, then it's time to sell, but I doubt that's the case.  

If you're focusing on trying to save the commission on a $25k purchase (the seller thinks they should get to keep it, and the buyer thinks they should get a reduction for it), you're focusing on the wrong thing, and limiting your choices.

Revenue generating and expense reduction opportunities are much more plentiful as well.https://www.biggerpockets.com/blogs/9145/54408-28-...https://www.biggerpockets.com/blogs/9145/54632-28-...

That means you could buy something for $700,000 put $24,500 and ask the seller to cover all the closing costs (this has been happening in this market and even asking for a reduction in sales price too)That would leave you with $25,000 to do repairs and fixes on the property and get it rolling.

Just going off of a flat % reduction from ARV doesnt make any sense because the property could have totally different rehab costs.

Your offer of $250 per month rent reduction was more than fair.

Yes, I do have to keep my reserves higher because of a reduction in cash-flow and the higher likelihood of something going wrong.

This used to be a maximum effective tax rate of 39.6%.Improves your property value through the capital improvement plan you conducted.Puts you in a superior position to take advantage of the positive economic trickle down from the $1 trillion economic stimulus that will be caused by the nationwide reduction in federal corporate tax rates from 35% to 21%.