Big tools (Like air scrubbers, concrete mixers, scaffolding) are a little bit harder to misplace and tend to stay until they get moved to the next job... unless we're in a bad neighborhood, in which case we aren't working there anyway!

Our cash flow was reducing.  

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.