Hopefully taxes don't continue to increase but not exactly optimistic about it.

Buy at a great price + location + good numbersRentals don't have to be rocket science.Figure rental rate based on like kind rented properties near by.Subtract: taxes, insurance, repair % (7.5%, but varies based on prop condition), vacancy (2 months), capex (5%, but varies based on prop condition/age), pm if using (8-10%).

Make sure you understand the condition of the property and if you will need to make any significant repairs or rehabs.Also understand the tenant situation. 

I will model decreasing or stagnant rents, decreasing occupancy, and increasing cap rates.  

In my experience, if the property is in great condition, you won't' need the handyman more than two -three times a year top!

I am in the process of having my personal home appraised with the goal of increasing my HELOC.

You may be able to even access it earlier without a penalty given various conditions.2.

The apartment was always in pristine condition and they would actually leave and leave the apartment to us.

Should I increase the bid to their asking price?

No special development taxes...Sold One year now, 16% increase in equity.