I talked to my agent yesterday and requested a $3K in price reduction, not that it makes a big difference in the deal.After the inspection, we made a list of minor things that need to be rapaired and serviced and asked for the price reduction!

I ended up getting a reduction in price because of the copper plumbing and wiring theft, so I wasn't too upset, just irritated at the additional time it would take for repairs.Then, literally the day after my electrician finished repairing/replacing the damaged wiring, it got broken into again. 

I'm most definitely going to ensure that we both come out ahead of the game by splitting the profit, but I'm still unsure how to reasonably finance a deal.Asking him to purchase a house with cash while I cover the miscellaneous expenses would be a pretty tough pill to swallow.

I feel like I am taking crazy pills!!!

Leverage increases your purchasing power to build wealth faster while someone else (the tenant) services your debt and allows you to enjoy the fourth benefit of investment real estate -- principal reduction.@Ned

For instance, average rent is $825, say you go for a slight reduction at $815.

The reduction of 6250 would put my final purchase price to 51,250.  

If you sell a rental with a mortgage or other secured loan, you'll have to purchase your replacement property with a mortgage or pay tax on the reduction in liability. 

A recession won't completely kill short-term rentals but will reduce the number of clients and the nightly rate until a recovery starts again.Assuming that your STR has sufficient margins to price aggressively so that occupancy can be kept up, there isn't that much to worry about other than a temporary reduction in cash flow.

Renovations and repairs would be physical improvements.Rent increase or expense reduction would be financial improvements.You can do either or both.