I have watched homes listed for $1.7m reduced down to $1.5 to sell. 

Areas for long term appreciation, or BRRRRing, or nicer areas with multifamilies that will just reduce your monthly expenses but never fully cashflow.

If inspection report states otherwise, I'll ask for reduced cost and put that difference in a reserve account or walk away.The same in Phoenix would cost $320k or more and rent for 0.6% R:V, if I'm lucky.

House hacking is an incredible way to get into buy and hold real estate investing with a relatively low financial barrier to entry… plus the added benefit of reducing housing costs!

He said it should be less but hopefully it can’t hurt to ask the bank to reduce the selling price.

Hire a professional that can do this right so you can reduce the stress, protect your income, and get some sleep at night.Remember: cheaper doesn't mean you'll make more money.You can start by going to www.narpm.org to search their directory of managers.

Just follow the direction the money is moving...it always point away from 2 and at 3.What's the best way to reduce risk? 

Through their knowledge, they reduce the risk for these very risky properties.One of the best characteristic about these properties is that you can purchase distressed assets in these areas easily. 

@Elizabeth Njuguna Hey Elizabeth I agree with Dan, I also would look into having your home insurance covering this, I am not 100% sure on how much that will reduce your out of pocket for any potential problems, so look into it, but it can help a lot :) Also lets connect I'm in KC and had a similar experience on a home I am closing on this week

By reducing your leverage you are reducing your risk and if the asset is in an area that has had a history of appreciating then for short term it may not look like the best investment but over time (which I believe real estate is long game) it’s another asset that continues to build wealth while reducing risk because of lower leverageSo answer is it depends if it’s a good idea or bad, but I would not necessarily exclude it because of a higher than normal down payment.