They run the numbers & if the cost to renovate exceeds ARV they have no choice but to pass.  

Makes sense for larger deals.Mark

2) Are any multifamily owners in smaller markets seeing tax increases that are larger than average?

New place to live with a much larger amount of capital to invest with from the proceeds of California sale.

Although it wouldn't have been my first choice of areas to invest in, I've read about several people on BP liking the area.

So I would try a commercial 'water permeable' sealer:http://www.miracote.com/products/miragard_-_vapor_permeable_coatings_and_sealersIf that fails I would be tempted to drill a number of sump holes (to allow a larger concentrated diffusion of moisture) around the slab perimeter.

Keep in mind a larger down payment also means a reduced note amount and reduced cash flow. 

@Mel WyattMF is very hot right now primarily because housing costs are so high and folks have no choice but to rent.

They are building the larger houses and selling them to people who are moving into them, so future vacancy rates don't apply.

It is very much appreciated.I have considered that route and will pursue it if I'm still unable to find larger funding.