Even if you reduce the rent to account for the expected costs.

These issues reduced my list substantially for the area I was interested in, my city which I knew very well and in which I feel I had a competitive advantage.I threw some bids out at the properties but was being quickly outbid and IMO people were paying too much.

Also, not sure if this applies but I know with some student loans you can apply for a deferment or forbearance to delay having to make payments or reduce the amount.  

Now after finding about these inspection issues, if I have to put the money in myself, it will reduce my COC Return to 44%.

The idea that air conditioning can only reduce temperatures by 10 degrees is laughable.

@Rachel Payton If the location is good and there is a demand for a three bedroom and the property shows well and has nice amenities and you have done your market research then I would suggest reducing the price.

I've received some lists lately of bank and privately owned property that has two different pricing on the sheet... warranty deed and a drastically reduced price for a QC. 

That way you have cash flow and appreciation, and reduced risk. 

How do I incentivize my property manager to reduce tenant turnover, shorten turnaround times, and basically reduce overall vacancy rates? 

Thanks for the reply Ben. reducing cost is probably not an option since I do 90% OF the work myself.