I would not assume renting by the room is going to yield higher gross rents overall or decrease your vacancies.

The property is in Chester County - however, Chesco is no longer allowing new properties to become part of the program, and are offering no new vouchers to people due to funding decrease. 

I think that those markets simply became very saturated so the revenue coming in for newer investors trying to replicate that model has decreased since they have not yet established themselves in that market.

A decrease of roughly 20%+ in 5 years. 

It had two price decreases totaling 5%.

It's coming b/c it is going to provide liquidity AND lower investment risk (decreasing cap rates and increasing property valuation). 

At the same time, have you and the neighbors talk to the town and hear your legal remedies, the town will be on your side, especially if you have written proof that it's decreasing property values, they'll probably be on his tail just like you are and can help you enforce in less than months probably. 

Does it just reduce his closing costs which ultimately adjusts his cost basis by decreasing it by $5k, making him responsible for it at the time he sells the property?

@Alex KosleyI agree with the above comments to pay off 401k loans and the car loan and your $850,000 home being a large expense and obstacle.What other investors have told me is to reverse engineer and figure out when I want to quit/retire early from my W2 job (with an option to work on a contract part time basis) then determine what I need to do to as far increasing rental income, buying rental properties, decreasing expenses, etc. 

.$6,000 for strategizing supposing you have a monthly 30 minute phone call is $500 an hour.If the cost is $10,000, and your tax rate is 35%, they would have to decrease your taxable income by atleast $30,000 for the cost to justify the cost.