They have policies and procedures in place that will reduce losses.

You can purchase land in the 100-200k range near oceans/beaches that could work for Tiny houses or I recommend looking at Glamping options to start to reduce your risk and make the process easier. 

I would also prefer to purchase something local (St Louis) so I can learn the ins and outs of property management - i think that is very important in reducing costs and improving cash flow, at least at the beginning.

If rents aren't going down, or go down less than sale prices, then it's probably worth it to hold the property.Remember, declining prices also reduce your insurance and (possibly) taxes. 

If so, this would just accelerate depreciation significantly reducing your taxable income while only costing you the price of the cost seg study.

I had them reduce the price by the estimated asbestos remediation quote ($55K) as well as do a seller lease back for a full year.

Builders are reacting with increased incentives including rate buydowns, but not reducing home prices for the most part.

@Chris Webb - Do you mean paying down points to reduce the interest rate? 

Also, having a good team in place to manage the high turnover is also a must to reduce challenges logistics.  

If you use a contractor the lender knows will do good work and can get it done quickly, it will reduce their concern of a project going bad.