Depreciation recapture applies at ordinary income rates capped at 25%, increasing your tax liability.

The margins are tight which increases risk.

For more expensive properties, the flat fee means the credit/refund increases exponentially, like $19,000 on a $1 million property.4.

Capitalized costs increase the basis and depreciation deductions over 27.5 years.

For me, I could handle the increase in cost and still pay much less than If I got a 4/2 SF.

You are already paying rent, so pay it to yourself to increase cash flow and accelerate savings for the next investment. 

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

The shorter the prepayment term has an impact on increasing the rate.4.

I just can't accept such a constant ever increasing loss, even if I can afford it. 

There are two ways to do this decrease spending and increase income.