If you go north into Wisconsin, it's the polar opposite and homeowners can overturn the foreclosure auction. 

HelloAn extensive internal review of this project has been completed and unfortunately the denial cannot be overturned due to the project's direct affiliation with a hotel.The WAIKOLOA BEACH VILLAS is part of the Waikoloa Beach Resort Master Association that is a hotel.

ROE (Return on Equity) is currently at nearly 15%.

My average with multis is 17%, houses about 12%.Unleveraged my ROE is only about 7.5%. 

You know Cabo well so I will use a specific example, Roca Vista apartments behind squid roe. 

So without knowing your exact payoff on the mortgage, but estimating 200k in equity, you are currently in the negative, but if you did bump the rent and created $400 in cash flow you are producing a 2.4% ROE.

Thumb your nose at a tax bill you don't have to pay in the 10's of thousands and stick with a negative ROE asset, praying it continues to appreciate.  

It all depends on your goals but one think you should consider is your return on equity (ROE). 

For example if you had 100k equity at start and one year later it was worth 120k minus sales cost and taxes, that portion is 20% ROE, now add any cash flow for the total ROE. 

Once you get a couple years into a property it's better to calculate your ROE instead of COC.