He has reduced the price quite a bit since then and is now nearing a level where it is still overpriced but somewhat realistic.We are in the market for a house and he suggested that we make a private deal after the listing arrangement ends.

I had to wait till 9 years to apply for my reduced widows benefits.   

This will reduce the number of delinquent accounts and slightly improve your score without sucking up all your cash.2) bring current any account that is not closed and you currently use such as utilities.

You will also deduct depreciation, which does not affect your cash, yet reduces your income at tax time.Do keep in mind that the IRS allows taxpayers to exclude up to $250,000 ($500,000 if married filing jointly) of the gain from the sale/exchange of property used as a principal residence for at least 2 of the 5 years previous to the sale.

Cash flow may not actually be as high as you thought and reduce returns.

As far as inflation goes, I agree it will probably wipe out a lot of the appreciation (if not all) but it also reduces the impact of the debt - assuming rents rise with inflation.

Getting a deductible of $2,500, $5,000, or even $10,000 can drastically reduce your insurance rates and protect you in the event of a catastrophic loss.

Your actual return is reduced by the amount of the principle paymentsThe risk in a deal like this is that your tenant goes belly up.

If you purchase a multi unit property you can live in one unit and rent out the others which can reduce or in some cases even eliminate your housing expense. 

Regardless, there were far too many earthquakes happening in Oklahoma, and the high volumes of water being injected into the Arbuckle formation were reduced.