On Jan 1 2015  the sale price is 30k and will be reduced by $250 every month until the tenants buy the house if the ever do.

Not a bad strategy to reduce your out of pocket.  

I would get them out right away unless the area is very high crime.

So then you can search for things like properties within this price range inside a city with crime rates in 2013 less than a certain number, weather wise less than so many inches of rainfall, and within one mile of where sea turtles nested.  

I realize you can lead a horse to water, but my theory is that if If just 1 in 100 tenants listen or read these books and help their financial situation, it may reduce my turnovers and cost of turnovers.I'm curious as to if anyone has tried this or something similar in their welcome package.

Now your cash flow is reduced by this amount: $1000 -$360=$640.$640 x 12 months =$7680 - Your cash flow for the year.Going back and looking at the fact that you invested only $30,000 cash, we will calculate the cap rate using only the cash involved:$7680 divided by $30,000= 25%You can see now that using cash only versus a high interest mortgage for this market is significantly increasing your cap rate. 25% vs 13.3%.Using the same scenario, you can use buy 3 homes with the same $90,000 and have a total cash flow of $7680 x 3 = $23,040 versus using all the cash in one home and getting $12,000 per year cash flow.There are other factors to consider of course...

If so, it would seem like it would be, in effect, a penalty since you do not get the tax benefits and your cost basis is reduced. 

This could really reduce the hourly rate of return from your rental business per hour of your time invested.

Low crime.

I have a 10 day inspection on the property.4 Bed 2 BathNeighborhood: B+Crime Rate: SafeSchools: Under averageSize: 3400 sqftOriginal Listing Price was 225000My Accepted Bid was 180000 after heavy negotiating and bidding by my realtor.Earnest Money Deposit: 18000Repairs 15,000Most repairs were already doneTerms: All cash offerI have found 3 properties around the same size in 3400 SQFT+- 10 years construction date that are less than 1 mile away that sold at the following prices in the last 6 months.$290000$295000$345000However, I still see that there are some houses selling in the neighborhood on Zillow for about 170000 - 225000.