An IRS lien, code violations (weed abatement, grass cutting, boarding windows-doors, and demolition costs), HOA fees, water- sewer bills all go along with the property providing the property has any of these. 

Due to higher taxes and home insurance rates, our cash flow has literally been cut in half.

Focus on saving for down payments, cutting expenses, and maintaining good credit behavior.

We are just refinancing a loan.Here’s how it works: You create an LLCYou buy a homeYour LLC gives you a loan for the homeYou file the deed for that loan at the county courthouseYou use the money from the LLC to buy and fix up the propertyOnce the property is completed, your conventional lender comes to refinance the loanYour conventional lender runs title and sees there is a loan.Your conventional lender refinances you into a new loan, and cuts a check to your LLC…a check in the amount of 75% of the value.

I finally found one at 20% higher than I was paying, but with a higher deductible and greatly reduced coverages (loss of rent from one year to 3 months, liability from $500K to $300K, everything else cut or excluded).Personal opinion (I work in insurance) and those of pretty much everyone I've spoken to in the industry feel we are at least a few years away from anything softening. 

Correct me if I’m wrong, but reaching out and saying “Hey, I know of this undervalued property and have comps” isn’t going to cut it.

Interest ratesWith the cooling inflation reports, the Fed is expected to start cutting rates in September.

I am having difficulty figuring out how to use the numbers here to see whether i cut my losses or proceed knowing some major capex work could be done after renovation, so hopefully no major expense in the near to medium term, and all the potential of the area in price growth and rental growth.  

Sounds like you might be better off to cut your ties to this one sooner than later. 

(d) Any one entitled and desiring to redeem shall be granted a credit as against the amount of money required to be paid for redemption as follows:(1) For all timber cut or sold on the land by the purchaser or his or her transferees, during the statutory period of redemption.(2) For any oil and gas, minerals (including coal bed gas), sand, and gravel, taken from the land or sold, and for advanced royalties or bonuses received by the purchaser or his or her transferees, during the statutory period of redemption.(3) To the extent the value of the property is diminished when any structures or buildings are changed, removed, demolished, or destroyed by the purchaser or his or her transferees during the statutory period of redemption.