Things I thought I had to depreciate was expensed.In your case, your deductions are also limited by your income, which may explain the difference of net deductible loss less than your net loss.

If you're the only one charging for gas on top of the rent, then I wouldn't consider it.Unlike water, and if you control the thermostat as I do at my rentals, unless the tenants purposely leave the windows open on cold days to spite you, you do have some control over gas usage.

Ideally, I would want to use the money to invest in real estate, but My investment options are more limited than if I had a self-directed IRA.I do not want to invest in stocks.  

I joined BP because it seems to be an education and mentorship style site.My Full schedule limits the amount of time I can commit to real estate and think I will do best with turnkey rentals.

I even spotted a brand new master electric control panel outside.

Trying to buy as an owner occupant, leaving your family behind to live under a separate roof, strains the limits of credulity.

Is there any way I can limit the risk?

FHA has a limit up to 6% of seller concessions based on the sales price or the appraisal price, whichever is lower.Seller concessions have to be approved by the owner because the property has to appraise at the higher value.An example: $100,000 with 1% seller concessions.

Traditional HARP loans were for GSE loans originated prior to May, 2009 and Fannie/Freddie loans were subject to conforming limits so, it wasn't a HARP loan if there was a refi in 2017 and for that amount although, if the loan balance was ten times lower?

@Christine H.To me, it would be a dealbreaker.Buying a multifamily on the basis of price appreciation is speculation.House price could keep rising and you end up making money (recouping some of your loss in the meantime) or there could a downturn and you'll lose more money when you decide to sell in.If you go ahead with the purchase of that property, you would have to feed that property with cash _every_ single month.Any expenses that you failed to initially account for will have to come out of your pocket.Increasing the rent might be difficult especially if you have tenants who have been living in the property who many years, because of the rent control.