You can negotiate repairs either before closing or as a reduction in the purchase price, but only if you know what needs work.

"These were interest-only payments, there was never any reduction of the principal.

And then wait for a nice price reduction.

It doesn't take high education math to determine there will be a surplus of properties available to live in with this continuation in population reduction.

Can you elaborate more on the negotiations and price reduction?

I am leaning towards seed money my wife is leaning towards debit reduction.

Maybe get rid of the 10% buffer if you already have a lot of science behind the estimate.Maintenance - As others have said, the maintenance number is too low (especially for 100% turnover) but your combined maintenance and cap ex do not appear too low.Appreciation and Principal Reduction - Cash flow is one of three profit drivers in real estate and to calculate the true return, factor in the other two drivers using the IRR.At a 60% expense rate for a $1450 rental, you are likely forecasting expenses a little on the high side (even with the higher taxes) but you may not be too far off (and the tweaks I mentioned may help).

But overall we’re seeing more houses sit on the market for longer and we’re also seeing more price reductions.  

I am a huge fan of debt reduction.

I have had to jump through a few more hoops than with my private lenders (all it takes is a phone call and they send the money), but it gives me an almost $2900 A MONTH reduction in expenses.