This greatly reduces risk on the principal invested because, at worst, the lender owns the property and will look to maximize value by selling the property or selling the non-performing loan.

If it stays on the market for a few months, they'd probably reduce the price, but you may risk losing the property.

Here is some info on increasing rent in New Jersey.http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/rnt_incrse_bultin.pdfHere's another link to towns in New Jersey with rent control laws.http://www.nj.gov/dca/divisions/codes/publications/pdf_lti/rnt_cntrl_srvy_2009.pdf

If I reduce rent by $75 a unit per month, while reducing costs by $100 per unit per month, human nature would be to do everything they can to keep their heating costs below that $75 that I just put back into their pocket.

However, with not having much savings, I am wondering if it is wiser to get an FHA loan with 3.5% down and the required mortgage insurance premium (1.75% I believe)  or live in a rental until I can afford the 20% down payment to reduce my interest payment on a conventional loan.

I tried to offer lower but my realtor said seller/flipper already reduced the price from $79k.

You could list the property inspecialty publications.

It seems like he is really fighting to get an listings, so if there is a way to reduce this problem a bit, I am sure I would do quite well.Thanks!

Either way it's a win win for all, most homeowners wait to long and reduce there options by waiting.  

No time restriction to sell , no deposit to lose, no pressure to sell , no getting out of contract if no end buyer, no need ask someone to reduce price......etc.PLEASE TELL ME WHAT YOU THINK ?