All the while you enjoy your increased net worth through someone else paying your principal reduction. 

A lesson I've learned in negotiating for people who are going to live in a property is to ask the seller to do all the repairs instead of asking for a price reduction.

Bryan - I'll be honest - I thought the death of the political forum would lead to a reduction in traffic in the forums, but I think it has had the opposite effect.

I see a lot less price reductions and a lot of new listings are very close to the mortgage amounts7.

Most the property has been rehabbed, its mainly an expense reduction/management play.

After you know all those laws, I would talk with the seller about notifying the tenant that you will only (this can be done through the contract) be purchasing the property if they evict the tenant in the time period of escrow, and the unit needs to be investigated while in escrow, or you want a reduction in price due to the lack of knowledge of that unit.I have inherited a tenant and California is way different and more strict with tenant/landlord laws than most states, but luckily the tenant left without too much muscle (figuratively speaking).

DO you ask for a price reduction or ask them to fix it or split who repairs what?

While you can ask for reviews, they will be looking at the principal reduction not the appreciation of the collateral, so that won't help as you have not made additional payments...unless you did.

I can say, we honestly dont care about price reductions, we welcome them as it moves the property faster and we move on to the next asset.

The issues would likely be mostly around noise / people coming in and out, and your long term tenants comfort with that.I am assuming you are using the long term rental for risk reduction and more stable income.