By putting 30% down it will put you in a much better interest rate bracket than 20% down and you will be able to use the credit to buy the rate down to 7%, when it's 0.5% rate reduction per point it's a 2 year break even and makes sense to buy the rate down even farther if you come out of pocket. 

You also have more latitude for negotiating with the borrower for a loan mod in terms of principal reduction and/or arrearage tactics, since your "true" equity is the current value of the home. 

I see a lot less price reductions and a lot of new listings are very close to the mortgage amounts7.

Most the property has been rehabbed, its mainly an expense reduction/management play.

It'll have to be an ARM with a higher interest rate" and NOT had them come back to the seller wanting a steep price reduction, if not out of the deal entirely. 

I sold an office building last year and the buyer "retraded" after their inspection when they discovered that 6 of the 8 AC units were about 20 years old and were near the end of their life.They estimated the need to eventually replace the units to cost in the $50k+ range and asked for a $50k reduction on the purchase price.

We had to ask for a $100,000 price reduction and tweak some lease terms due to an iffy roof report.

Finally, I took the red pill that was spoke about in the recent podcast and realized this is what I want!

Your mortgage payments include interest, your financial equity is the amount of principal reduction as amortized.

We made a price reduction request, they countered and I requested we meet in the middle.