Cash on Cash is calculated by taking the Cash Profit (calculated after mortgage interest, but before Principal reduction) and dividing it by the Cash Invested.

A $250 reduction in rent is $3,000 a year.

Also, has anyone ever tried actually offering a full or close to full price on a rehab with X day inspection period and hiring a GC to get a legitimate quote then renegotiating price reductions due to repairs?

And if the broker refuses to return the EM to you, you'll have to spend a lot more in attorney fees than you're going to get back to take this to court.Unfortunately, with FNMA, if they decide not to be reasonable, it's a no-win situation, unless you're willing to spend a lot of money to get back a little.I would request a price reduction and hope they agree...

For expense reduction, the first place I'd look is buying a much less expensive car.

After repairing the septic violation (estimated $20K), I would go through the reduction hearing process to have the lien reduced as much as possible.

The 11 unit apartment building has had a price reduction.    

I would negotiate a significant reduction in the purchase price or have the seller get rid of the tenant allowing you to find your own tenant at closing.The owner could of course simply pay you the pro rated 10 months rent but that is little consolation and you probably have leverage to get more.

Tenant asked for rate reduction.

This is the quick and first glance way I look at it.Verify gross rents didn't have first months rent half off or free otherwise stated annual rents per unit actual rent is lower and that rents have not shifted downward since all the lease ups.If lease rates have moved down some of the tenants will want a reduction or leave to go elsewhere.