Because I'd be reducing my potential tenant pool.

It really is not worth the asking price even though it has been reduced twice since I initially posted.

I bought the house for 217k so I'm hoping that I can reduce the property tax assessment value to that.I made this mistake because my taxes are paid through an escrow account through my lender.

I have my own ideas, which may be painful, but hopefully the impact will be reduced by holding tangible assets like real estate.

In this case income that might otherwise be considered ordinary business income has become passive income in the LLC thereby reducing self employment tax.

I am in the process of refinancing my current 30 yr mortgage to reduce my monthly payment.

I don't recall what the warranty on them are, but I got a replacement directly from the company at a reduced price since it lasted less than the warranty period, I recall I got it more than once, but that's for more than one property.

My question is: what should the money flow be in order to maximize income and reduce taxes while following all laws? 

This amount would reduce your left over cash from $30k to $22k.Scenario B: Purchase home for $100k using 50% down. 

The "unleveraged return on investment" can be a lot higher than the purchase cap rate when you are increasing rents, reducing vacancy, cutting costs (or vice versa).I believe this is what you are asking and/or point you are making.