Am i better off waiting for a few price reductions first and then offering.  

However i would like to stress it here that  paying down on mortgage loan is good because it often time serves as a buffer to your investment in times of unexpected  market free fall and uncertainties which may lead to reduction in cashflow and income which of course can make mortgage payment difficult.

Expense reduction or revenue growth?

I think there are 3 main reasons:Financial ignorance: most people I know are happy to follow the 401k path to wherever it leads and worry more about where they are going to go on vacation that year2) Laziness: RE investing is not something that can be done well while sitting in front of your computer and just clicking where someone else told you until you think you're smart enough to click where you want3) there is rarely a "fat pill" in RE investing.

I'd tell the seller that based on the true condition of the  financials you'd typically be looking for a 15k price reduction to take it with a seriously delinquent tenant.

Cracked foundations are scary but you get a huge reduction a lot of times which can turn into massive profits down the road. 

. - FYI - Annual debt service is calculated based on an asking price of $57,529.18 w/ 75% LTV. 30 year term. 4.625% interest rate which comes to $2,661.96 annual debt serviceMonthly Rent $750.00Vacancy Allowance @ 10%Expected Annual Gross Income $8,100.00 Estimated Annual Operating Expenses Insurance $400.00 Property Taxes $2,861.00 Property Management (10%) $810.00 Repair/Maintenance (8%) $648.00 Total Annual Expenses $4,719.00 Net Income $3,381.00 Annual Debt Service Mtg #1 $2,661.96 Annual Net Cash Flow $719.04 Loan Principal Reduction $541.00 Combined Return $1,260.04 I think the property does well w/ 75% LTV on the purchase price. 

Hey BP!So, I just received an inspection report.  It's for a small multifamily.  The numbers work fine... currently at 2.79% rent to price ratio...not wonderful, but meets my criteria.  So my question is... got the re...

If setbacks require me to keep the parcel, I'll follow your advice and try to get a reduction of liability.Thanks.

The reduction in management hours and ROI on the expense for a facility this size wouldn't be there.