Even at significant price reductions, people usually still can't afford cash purchases.

The rent reduction, the longer lease, the waiving of some lease provision or other all became the status-quo that I had promised Them.

This is my first property.So after the home inspection, we agreed on a price reduction and opted for no further inspections.

We entered escrow $68,000 above the asking price but was able to negotiate the priced down by $47,000 through inspections/using our FHA 203(k) as a reason for price reduction.

If a homeowner finances you his property for 100k and you agree to pay him 100k but he owes 50k, and he has been paying for the property for 20 years, if you keep paying the mortgage payments and you agree to pay him 100k in 5 years.. who will get the principal reduction?

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

I know its a hard pill to swallow to let someone get away with that.

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!

And that 25% reduction causes the rent income (usually) to be negative - but at least it would still be lot better than not being counted at all. 2.

An amortized loan is "front loaded" - the early payments are almost all interest, very little reduction of principal.