Im not sure how much these taxes are, but what I would look at doing is 1031 exchanging the rental into a rental property in NM.

In this scenario, you’re taking a higher rate in exchange for little to no closing costs.

I met with a real estate broker today (commercial agent) and he mentioned that the tax deferred exchange only applied to properties that are worth more than 300k, and it is mainly used for commercial properties.

One thing I didn't mention is the importance of using 1031 exchange when you have everything built out that I outlined.

It's currently rented out, refinanced, candidate for future 1031 exchange.

I am looking to provide capital for rehabs in exchange for an equity position and cash flow.

I have some knowledge of basics in real estate investing, having helped with a couple of 1031 exchanges over the years, and dealing w/residential rentals, but still have a lot a lot a lot to learn, especially about commercial.  

Unfortunately for foreign national loans the general consensus is 30% down payment, rates in the 6-7+ and possibly 6 months in reserves in your home currency.  

Most of the multifamily deals are going on behind the scenes so that people can do 1031 exchanges and move up to bigger properties. 

That's one option, look at a possible 1031 exchange ??