I think @John Warren nailed it though....if you send in a plumber to all the united to check faucets, toilets, valves, etc. you could probably decrease a lot of small leaks and reduce the bill somewhat significantly. 

Lower leverage reduces returns, however in this market the risk/return profile of a lower leverage deal is much more attractive.I've syndicated over a dozen MF projects utilizing a floating bridge loan, however in this market we are only closing with fixed rate, lower leverage debt.

I’m trying to do a cost segregation on a duplex I purchased and rehabbed last year, also looking for a tax guy that is familiar with them and can help me reduce my tax liability with bonus depreciation. 

Hi Jie, Some areas in Phoenix/Scottsdale and surrounding areas are starting to implement the 30 day minimum rental restriction in hopes to reduce the amount of STR's vs a more primary residence. 

But yeah, just curious what you all have done to help reduce this expense? 

Are you saying the owner went out of their way to get the property rezoned to reduce units?  

House hacking comes with many advantages like:1.Reduce or eliminate housing costs 2.Gain flexibility 3.Mitigate risk 4.Tax benefits You could also apply for an FHA loan, meaning you'll need a down payment of only 3.5%.

I could also see a garage conversion reducing the value of homes in certain areas. 

The key benefit is that you've reduced the risk of vacancy in your initial few months of ownership. 

You have the lease to show rent amount, and zero documentation to show rent has been permanently reduced.