So if taxes in the offering memorandum say "$8,000" and then it sells, and the taxes go to $16,000 it means that on a 6-unit building you'd have to somehow recuperate that additional $8,000 (or on a 6 flat it would be $8,000/12 months/6 units = $111 increase in rent, just to pay for the new taxes to equal the return you thought you were getting before!

Sadly, a the current cashflow of $132 I am now at it will take pretty much a year and two months to recuperate this loss, GIVEN there are no more serious damages down the road.I am really needing some input from fellow investors on courses of action.

Run the numbers and see how long it would take you to recuperate the 3% penalty with your new lower payments.

You'll need to hold for a few years just to recuperate negative equity plus closing costs.

I am thinking that I will try to recuperate my new flooring cost over the course of 3 years.  

If i BRRR a house hack, I could still refinance and recuperate my money right?

Most would say take the cash and run, but I'd like to recuperate some of the money I've lost if possible.The first offer is a full price with 15% down, seller finance balance at 8% over 5 years.

@Andreas Mirza Every state is different in how they handle this process; last I heard, Illinois is one of the last states that has the ability to file a judgement against unit owners with the ability to gain legal possession of these units (granted by the judge) and rent them out to recuperate the monies lost due to non-payment of association dues.

Additionally, this property will be able to rent out for more money each month, also helping recuperate some rehab costs in the near future. 

Since it's paid in cash, the only cost we have to incur through the 4-5 years is property tax, which we may recuperate from the sale of the land 4-5 years from now anyways.