If I put down 30% on a 30 yr conventional loan, my cash flow is around 750 and I'm out of pocket about 67k (including the 10k for potential rehab.)The main question im asking is if there is a creative way I could decrease the out of pocket?

Interest rates are more likely to increase than decrease over the next ten years.  

The inspection led to a slight decrease of agreed purchase price (from 206K to 205.5) but what really shook the boat was the first appraisal report.

Create a plan for how you will increase the income and decrease the expenses. 

If property values decrease, it could impact the property's resale value.4.

As you get to trust them more, you can decrease the frequency of the visits.In the lease, simply state that the tenant is responsible for ensuring the lawn around the house is kept green to ensure no problems develop with the foundation.Where I am, I've not heard of foundation issues resulting from not watering the lawn. 

Even a few blocks father than another condo and its occupancy decreases drastically so you have to drop the price to deal with that.

So, it's not a question of 'if' but rather 'when' they will decrease.

Should I offer a decrease in rent based on not having hot water and stove/oven, and in one apt their dryer, capabilities for 5 days?   

I received notices from the Hamilton County Auditor on about 30 properties last week.  15 properties valuations stayed the same, 1 decreased (for the amount I paid for it), and 14 increased.  4 of the increases were over 200%, they were condos I've purchased the past 5-6 years around 15-20k.