Even if market values only increase with the value of inflation (2% compounding), a $185k property should net a $40k gain.I suspect that 25% vacancy is right about break-even for them, assuming the same 8% CapEx and 12% Maintenance and Management costs I used in the other models. 

The below chart shows ALL 20 cities increasing for Nov'17, year over year.

I don't know much about that market but I have worst situation here in my neck of the woods, so I would say 8% cap with 11% COC is much better, but then you have to weigh in other factors and see if you can either increase the COC by lowering cost or increasing NOI thru some value add.

If you can take a reduction today, I can buy the house before it goes to foreclosure and you save the foreclosure expenses and risk of it going to the city if it doesn't sell.They might be more interested if you want to increase the tax value, for example if you want to build a house on it.Otherwise you have to wait until it goes through foreclosure and you never know when that will be and at what price. 

Although more costly than a window air unit, mini-split units are much more energy efficient which will save money over the life of the unit.Advantages- More energy efficient than other cooling options leading to increased savings over time.- Offer higher level of functionality like timers and sleep functions to allow you to customize your desired temperature settings.- The loudest parts of the unit are located outside making mini splits quieter and .- More secure than window air conditioners not only regarding intruders but also dust and pests.- Many units are designed to both heat and cool allowing for year-round comfort.I hope help you my comment, or to anyone.

My payment increased $1200 per month.

But, buy, but ,but but....each to their own.You can not increase cash flow with cash.

Refinance at the start of Year 2; $185k ARV * .7 = $129,500 - $50k balloon = $79,500 + $12,744 [cash flow from rent with new mortgage] = $92,244 cash flow Year 2Sell in Year 5; less the balance due on the amortization schedule $121,909 = $63,091 cash flow Year 5The present value is now $135k which means that if I put in $140k at the start ($80k purchase price + $60k rehab costs) I overpaid by $5k.I realize there are a lot of limitations to this, for starters I didn't increase the rent at all and I assumed no appreciation beyond the ARV.

For my portfolio, we always do an increase of 2-5% to keep up with the increase in property taxes (2% on average year over year) and the market increase (somewhere between 5-10% in my area).

Depreciation qualifies as a business deduction.You do increase the chance of an audit with an amended return.