It came down to, do I overpay for a property by $40k, or eat the $30k in taxes.  

The condo we are scouting does allow rentals.The HOA fees have been something we  totally don't like as they eat into your returns.  

Properties are generally much cheaper relative to the rent they pull in, than in NY.3) Lower fixed costs - lower real estate taxes for starters relative to your rent roll, etc.4) Lower variable costs - labor is A LOT cheaper here.  5) Less stringent code enforcement.6) Less maintenance - milder weather, and younger average age of homes make for less maintenance.   7) Diversification - low entry price to buy property allows and investor to manage risk by buying properties in different neighborhoods instead of putting more eggs in one basket.In additional to the benefits I listed above the city is growing so fast that homes rent very quickly, often times before the sale of the home.  

However the property taxes are expensive and eat into a lot of the cash Flow, any other investors who deal with this have ideas?

I eat it on sales above $200k or so, and on lower priced deals I tell them it's part of my services, period.

Should I just sell it and eat the taxes and move on?

Upon this , he said I have a place, the man had just gotten out of the hospital after 7 months and the estate was eating out of his retirement fund with taxes.

You will eat up all your cash flow, if there is any, just travelling to this park to turn it around.  

Most subs that will do labor only are hungry to eat and might pull off the job because they can't make money.To your main question a jv might be a good idea.

I realize you can't eat equity unless you sell or refinance, but it's still yours.