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.

Residents expect it and it does reduce time on market.

Ditto for reducing Police or Education expenses to the degree necessary to effect real change.Here's a link from DNA Chicago specifically discussing how the property tax increase will gentrification in these neighborhoods.  

If so you're far less likely to default and lose your home so that shouldn't be much of a concern... worst case you can refi (even at a higher interest rate) and reduce your payments.