Because most of the closing costs are fixed, the percentage can be extremely high on lower priced properties.

any fee's you pay to foreclose are also added to your note.. and if someone took it sub too those folks generally wont have the ability to cure.. but maybe.. a lot of sub too in lower value assets is get in title for very little money then rip the rents.. knowing they will have one to two years in the foreclosure process so they get 800 a month for a few years.. do not pay anything on the property and walk away..

However lower caps like 5% don’t cash flow, so they are out for me.

. $50K is the minimum criteria on the lower side with most lenders.

I really like / prefer the 14 unit property due to its lower asking price but CAN NOT afford to hemorrhage money monthly like it currently is.

There are 4-plexes in the south end that are well within that price range,  but you will be dealing with a lower socio-economic bracket of tenants that you are probably used to with your townhouse.  

Like you, the higher market has given me an opportunity to prune lower performers and re-invest in better deals, when  I can find them.  

The interest expense on the loan would lower the taxable income on your investment.

Do I continue with the deal knowing that the cash flow is lower than expected but just get into action or wait until another deal and continue waiting knowing it's a sellers market? 

However their taxes assed value are all above $50,000.So my question is, can someone provide a step by said process on how to argue a lower tax amount .