Although you lose in some ways (control, % ownership), you gain through the influx of cash, and the reduction of risk.Does anyone know about doing this?

(annualized) cash flow+tax benefit+appreciation+principal reduction/total investment. 

, there should be a staggering price reduction if the seller is requiring you to use crummy financing.

Every 30 days there will/should be a price reduction, after 90 days allot of times the bank, or AM, asset manager will give the property to another agent with a big reduction.

I'd try structure something that was a win-win for both of your (ie where both your interests are aligned)In a traditional buyer/seller relationship, every $100 reduction in price you negotiate is $100 less in her pocket - not a good way to maintain a friendship.I like Luke's idea.

An agent may know of future development/zoning/etc. issues of which I'm unaware.If I get an agent inolved, that will take money out of the pocket of the seller, which may not allow me to get as much of a reduction off the asking price, true?

I would start there and then work my offer reduction backwards for the non-performance.  

We've seen a 9%-10% reduction in rents in cities such as Seattle and San Francisco.

If not legal, you could look into structuring it as higher rent, but a reduction if paid on time ... this sometimes gets around such laws, but consult a local attorney if in question.

The taxes are used to pay obligations, so while you may have a small reduction in taxes on year, the local government still has to pay teachers, fire fighters, etc.