Principal Reduction & Depreciation is way down on the line when underwriting these deals... like almost the tail waging the dog or never get's look (unless its a long term hold play) but still, down the line.   

. $4,200/yr in mortgage principal reduction)Amount spent on repairs: $15,000 (majority spent on new HVAC/duct system and appliances)CoC return: 20.6%I think that covers most of the relevant numbers.  

Most of the people there were looking for the magic pill to make them rich without putting in the work.

You may have an estimate of $15,000 and ask for a $10,000 reduction in price. 

Everyone will have huge reductions in cash flow and likely resulting property devaluation. 

I responded with a best and final offer consisting of the same terms as well as a reduction in price for items found in the inspection.

@Todd Moriarty, make sure you're adding back the Principal Reduction from years 1-3 for a 3 year exit, or Principal Reduction from Years 1-5 for a 5 year exit. 

They are looking for a substantial reduction on price.

This is the absolute correct attitude to have in this business.About half of the time the answer is yes on a tax reduction.  

Were there any price reductions?