We are working with a lawyer for appeals, loan modification and/or principal reduction.

@Cleotha Euwins he was already open, yet one thing you could do is search for properties that have had many price reductions, multiple on and off listings, long time lapses on the MLS and send out mailers to owners/realtors .. time lapses are sure to soften even the hardest stance a little bit .. even if they say no .. you can stay in rear view sight, keeping an offer open

Just ask fo the rest in a price reduction. 

After the inspection about to ask for a price reduction.

We have the inspection which pointed out the problems but my plan is to get a foundation repair company out to give me their assessment and a bid for repairs which we would use to negotiate a price reduction.  

There is seasonality in renting for sure - if you end up with vacant rentals after the school start in autumn, you will see a decrease in inquiries and less traffic, and likely a reduction in rent.But also the rents are, if not stagnant or decreasing, for sure not keeping up with the property tax increases and other expenses.

Has your agent strongly recommended a rent reduction?? 

You are going to pay the 5K to get a 1k reduction per year in taxes for the 3-4 years untill they assess again. 

I'm seeing lower initial asking prices and price reductions out west of DFW. 

Take a draw of your cash, report it as a reduction of equity, then buy your next rental property.