Add in debt reduction, tax incentives, inflation and your looking at a pretty nice return even if you do add another 5-10% budget for capex.

I find it hard to imagine they'd take such a significant price reduction if they are listed on the market but you never know.

This makes me feel more comfortable buying in Las Vegas right now...I'd be making 10% CoC return roughly with the right deal, with low probability of a significant price reduction in the future.

Learn how to set up automatic emails to yourself when a good deal hits the market or has a price reduction.

2) Discuss a cost reduction or compensation from your builder if these mini-splits end up being cheaper than a traditional system (it's 50/50 if I were to guess). 3) Don't let this hold you up from getting the build complete and rented out.

It makes sense to not include the principal in the calc because that money is really going to me as principal reduction. 

Two price reductions and I own two houses and have two mortgages.

Once you know how to make money a 50% reduction in net worth isn't that scary.

A price reduction has already taken place around 5,000.00.

Property gets put under contract and then with due diligence and inspections you slowly start chipping away with price reductions.