I am still fighting this treatment and fully confused what should I do.

Should I get a lawyer and fight this thing or is it not worth it?

There is no city code or regulations for me to fight.

I'm in the same boat & have been using the calculators on BP to analyze local properties in my area to get better at analyzing properties and also hunting and networking for lenders in my area to help get started.The most important if you want it bad enough fight for it study for it struggle for it can keep going to get what you want good luck and I'll see you on the flip side.

Even with the extra money it does not make up for my time which is why I fight hard to get renewals. 

I don't recall exact details but he had been fighting a claim that happened at one of his properties, I don't recall exactly how it went but something that started from 1 evicted tenant, that he lost, in process of fighting other evicted tenants had been notified, and everyone jumped on the band wagon, he had horrible documentations and did a horrible job fighting it, so lost in grand manner.

Appreciation and Cashflow rarely go together, you have to pick your fight: If you're looking for Cash flow, I'd recommend the Midwest (Michigan and Ohio), if you're more into appreciation the Southeast (Florida, Georgia..)The best areas to invest in my opinion are Class B areas in the suburbs of the Midwest, ideally with an ARV of $100k to 250k and a monthly rent between 1200 and 2000.

How about if you lose more money each month with further economic deteriorations resulting in even lower revenues. if you can afford it and if there is a strong case that this slow down temporary in your market then do your best to fight through this.

The appraiser gave us the $25k for the remodel and the client settled at $75k instead of continuing to fight it.

Heck, he may decide to stay and fight it after all.