Everyone saw a small decline in the property taxes and stayed quiet.

Talk to a tax professional.

You will like tax time too. 

Well, they may have other properties doing great and need the tax write off... maybe they're expecting great appreciation of the property and will sell it later... maybe rents are rapidly rising and they expect to be cash flow positive in 20 years when they plan to retire anyhow... or after the mortgage is paid off...Who knows?

Net income = $39,240Monthly operating expenses are as follows: Trash - $33, Landscaping/yard - $66, Electric - tenants pay, Water - $95, Maintenance $87Monthly taxes about 3KSo, gross expenses are at $41,064If I'm doing the calculations correctly, my net operating income is -$21,888 and cap rate is -3.4%.Obviously the current numbers look terrible for this investment, but I feel like the rent should be raised significantly based on comps (above 2K each unit). 

That would cut into your expenses a good amount, add property taxes, insurance, property management, repairs, capex, and a small vacancy rate and you can see that number starts to go down rapidly.

When I talk to new investors, the first question I always ask is "Are you just looking for the investment benefits of real estate (cash flow, appreciation, tax benefits) or are you looking to build a side hustle business around real estate investing?"

It runs background checks, credit reports, eviction/criminal reports, template leases, a Docusign-like program to sign lease agreements, rent collection, tax consolidation for EOY tax time, etc. 

Consult with experts, such as real estate agents, financial advisors, lawyers, and tax professionals, to help you navigate the investment process and meet all legal and financial obligations.Good luck!

One thing you didn't talk about was equity, taxes, or ROE.