I successfully negotiated a $50,000 reduction in price in a multiple offer scenario. 4) Do your math.

an IRRRL is simply an interest rate reduction refinance loan, so the amount of entitlement you are using does not change as a result of this type of refinanced. 

There are 5 bins...cashflow, appreciation, principal reduction, tax deduction, mortgage interest deduction.

For example, if your inspector comes up with termite damage, you can ask for a price reduction or treatment by a licensed exterminator and repair of the damage by a licensed contractor. 

The remainder is a reduction of the mortgage principal balance, which is a liability.

You have done minor reductions so far so still might be behind the pricing curve.

I'm leaning towards the "reduction in income" selection as it's true and it doesn't require hardship documentation....As you can see- I need all the help I can get here...

I’ll buy if someone is willing to reduce (I still don’t know how much of a reduction is necessary), but if not I’m happy to wait and let them hold a non-performing property for that much longer. 

Lots of extra items compared to SFRs for lawn, common electric, water/trash, higher turnover, offset by economies of scale to some extent, so 50-60% for expenses is reasonable.The 12% net yield (cap rate) on 50x rents (135K puchase price) and 50% expenses, combined with 25% down and 6.5% 15-yr commercial financing gives you:Pre-tax ROI = 29%After-Tax ROI = 24% (30% marginal bracket)Yr 1 Cash Flow ROI =12% (net of principal reduction)... so you put in $34K and have CF of $4,050 in yr 1.

The beauty of long-term cash flow is a reduction in volatility.