My goal would be to bring in enough rental income to offset the expenses so that I can reduce my housing expenses as close to zero as possible.I've seen some scattered info on the web that deducting taxes from owner-occupied rentals is a bit different (square footage versus # bedrooms rented out versus pro-rata, etc).

Someone mentioned an S corporation which is a method to reduce that self employment tax- but really only advisable if you've made over $60-70k. 

So if a bank wants to reduce their exposure to that...then they will put extra rule in place.  

I have reduced the price twice now, and still no bites. 

However, I can find deals that will make $100-$200 in cash flow all day.My question is - would it be foolish to reduce my cash flow target so I can buy more deals?

When tenants vacate, I can adjust the thermostat up/down for vacancy and reduce utility use.

If you have a 15-year loan, you may want to refinance into a 30-tear loan to reduce your monthly debt service.  

Let her know that there is evidence of smoking in the unit and mitigation is underway, which will reduce her deposit return.  

@Mark Vandzura - wages/salary will be under expenses which will reduce your net income.

@Dan Schwartz yes, manage with an S or C Corp to siphon profits and reduce SE tax exposure.