I could offer a principal reduction to say $35,000 (over half the current balance) and then when the new lender refinances, I would get $35,000 pay off, minus my costs.

Samsung purchasing agents had to show that they got a 10% reduction from original quotes in order to satisfy their managers.  

I was laid off about a year ago and got behind in my college payments and the debt starting pilling up.

I have rentals in places where I cannot ask them to do yard work or shovel the snow without some sort of written agreement between me and the tenant and some consideration (rent reduction or $ in exchange for doing those services). 

You figured right down to every cent for everything including depreciation, adding-back depreciation, minus mortgage principal reduction, all of which result in an annual $2,721.31 net free cash flow for you.

The advertised return estimates include expected tax benefits and principal reduction which I personally never include in my forecasting. 

I believe having a small solar PV array, tight building envelope, extra insulation, reduction of thermal breaks, continuous supply of filtered fresh air through an ERV, and energy star products can be enough to get a "green" premium on new houses.  

But I saw him go through hell of trying to hold rents, rising vacancy, rent abatement and finally reduction, which brought him to the financial brink.  

A quick question on entity structure and insurance: As I'm planning on investing in multiple properties over the long-term, I'm considering forming a series LLC in Texas, which has several benefits in terms of administrative cost reduction (relative to having an LLC per property).

Mortgage paydown and tax reduction is also very nice.You can still find cash flowing areas an hour outside of Toronto ...though that too is now pushing outwards to about 1.5 hours but it is still out there for the taking just take a bit more looking and patience is required.