-if you are looking to decrease your mortgage payment, there are other options other then higher downpayment.

On the plus side, property taxes are set to decrease by 50% (but over 3 years).  

I want to know what will happen if the asset can't be sold in Yr 5 as planned and it has to be held for 30 more months, financed at 300 points above the origination rate and is finally sold at a rate 250 points over the entrance cap rate all while experiencing  a 10% decrease in occupancy.

Where else can you park $30k and get a +100% ROI plus decrease your living expenses?

Normally, I'd say to decrease expenses, but sounds like you are set there right now.

With the units being so small it doesn’t seem like you can as much value besides raising rents to market value.The benefit of this is you’ll be able to decrease your expenses.

You may be paying more, which is going to decrease cashflow.

I am wondering if it would be worth it to hang onto this property and continue to build equity until the market improves, or interest rates decrease, and I can sell to find a more suitable market to invest in.

Maybe I should have worded it more as increase income/decrease expenses.

If you have STR, you might beneficial filing jointly if it can decrease your AGI.