Maybe it was a real legitimate negligence issue with the pizza parlor, but more likely someone looking for a payday off the back of another small business owner. 

One must have legitimate self-employment activity or business with earned income in order to qualify.

Therefore, if we avoid refi, we could put the existing property into an LLC, or whatever makes the most sense, legitimately in 6 years.Forgive me if I'm all over the place - I am posting for advice mainly because I'm in danger of "analysis paralysis" on this, and that seems to be 1 of the primary reasons investors fail to do anything. 18 years of time wasted/opportunity cost is bad enough ;)Thank you all so much for reading - any help and advice will be greatly appreciated!!

However, your attorney may have other suggestions regarding outs that may be provided in the contract that you have not considered, and that are legitimate in your current situation.

Also, if the market starts going south foreclosures will rise and deals will be aplenty....but I would have already put all my eggs in this basket.Am I being paranoid, are these concerns legitimate, or something else? 

I assumed they were legitimate but I now see disclaimers.

The one thing I am more confused on is the actual contracts and wording needed to make everything legal and legitimate.

I challenge anyone to share those resources that are legitimate. 

Your concern regarding older homes is legitimate, they have issues. 

It depends on where you're considering in Brooklyn, and whether you only want to purchase an actual brownstone, or would settle for a 3-family house made out of different construction/facade.I'm seeing legitimate/usable 3-families about as far north as Sunset Park which has a lot (relatively) in this price point, maybe Greenwood, but the inventory in Park Slope/Gowanus is either a 2-family or is very small as they're much closer to $1000/sf.