The property has decreased in purchase price from $99k to $95k.

The HELOC gets re-evaluated and credit line increased to reflect the decreased mortgage. 1.

I like the idea above in calculating how much vacancy (or decrease in rental revenue due to dropping rents) can occur yet still be at break even (or whatever acceptable negative cash flow you can financially handle).  

(though as we all know these numbers are probably way off.)All of that being said, my wife is now completely turned off due to the fact that it's not a "cute little apartment complex".Here are my thoughts with what I would need to make this fit for us.PP go down to $175k-$190kOwner finance at 5.25%-5.5%Some agreement on either decreasing the $30k down payment or having owner fix/invest in a certain amount of things before I buy.

You actually DECREASE your Debt/Income. 

The intention is to decrease the foreclosure rate for such a low down payment, by it being an owner occupant product.

If you decrease expenses then the NOI will increase.  

Louis Federal Reserve website to look up info on average rents and to my surprise, there was very little in the way of decreases on any long term basis.

If the tenant breaks the lease the value in the addendum is added to any future collection attempt.If done correctly, in the right area, this can decrease the amount of turnover and increase the speed with which you take on new tenants in the event of a vacancy.

That said, you should have sufficient liability insurance.As for your second question, the only things I can think of are:have the seller pay closing costs (as seller financing), which isn't really decreasing the cost so much as deferring the costDon't use an agent, then convince the sellers agent to split the commission with you instead.Buy all cashUse private money with no up front costs - but if you refinance you'll be paying them on the backendShop around with different banks.