Tax Reduction Strategies:Depreciation: As a property owner, you can typically deduct the cost of the property over time through depreciation.

This agreement should outline the changes being made to the loan terms, such as a reduction in the principal balance, interest rate, or extension of the loan term.

The longer the investment is held, the greater the reduction in tax liability.

This reduction in taxable income results in lower taxes owed.Limitations on Depreciation:While depreciation is a valuable tax-saving tool for rental property owners, there are a few limitations to be aware of:Recapture: When you sell the property, you may need to pay back some of the depreciation deductions you've claimed as depreciation recapture tax.

This concept applies to both residential and commercial real estate.Benefits of Real Estate Depreciation Deductions:Reduced Taxable Income: The primary benefit of depreciation deductions is the reduction of your taxable income.

Cashing it out will result in a significant reduction in the amount you receive after taxes and penalties.

I was in the process of entering an amendment for a reduction of rent with my landlords when landlord b suddenly passed away.

Now, you're in a position to get inspection and have contractors to come out and submit proposals / bids for the work.If you don't like the costs and the numbers do not work ("the numbers" being a combination of rehab costs plus any price reductions you are able to negotiate), invoke your inspection contingency and back out.

Properties that are in a little rougher shape may find RE investors willing to take on that liability usually for a reduction in price.  

Easier to ask for a price reduction.If you can't come up with an agreement on the reduction then you either take it at the current agreed price or walk away.