If you have LTR experience you could push for an exception with compensating factors (credit, liquidity, time owning other real estate,).

The owner occupant preference is obvious during the exclusive period where investor bids are not excepted.  

The disadvantage of living in NYC is that the prices of homes here are high.The advantage is that our salary is higher than other areas.I think you should consider to continue living in NYC and invest in out of state rentals.The only exception would be, if you can work remote and keep your NYC salary, then I would consider a house-hack elsewhere.

One person did tell me I could possibly turn it into an efficiency or something like that but would need a special exception.

@Aaron S.Your friend is correct unless there was a warranty - and most warranties are for a year with exception of structural warranties that may be outlined by state law / building code.Sorry you have to endure this.

Feel" the true beat of the portfolio's income and expenses performance before using leverage to speed up the growth of your portfolio.Using cash only will protect your bottom line in scenario's like yours when the properties don't perform as expected as you won't be on the hook to cover the mortgage expenses.Just my bias opinion so take it with a grain of salt.I've also witnessed many finger pointing instances when others get involved.Like a new property manager, realtor, contractor, etc...I've had my share of bad experiences with realtors that threw my company under the bus and got in the investors ear to flog it at any price just so they can make a quick commission.It get's very messy, painful and pretty much turns into a disaster with the investor not knowing who to trust or what to do anymore.Similar to what you post about has happened to me and my company many times and if allowed the opportunity, we do our best to fix and come good.Some loose trust and faith and I 100% understand, but as soon as someone leaves the wing of my company there is not much that we can do because as I mentioned above, everyone else get's involved, has an opinion and the situation get's very messy.Having in-house property management is vital when such a "crisis" arises.I tried out-sourced PM when we first started and it was a disaster.We had no choice other than to bring it in-house.Hated my life for the first 5 years with in-house PM and fast forward 10 years, it has become our "golden goose" and a very well streamlined and beautiful business.From what I've seen and read on the forum and elsewhere it seems like RTR has a good reputation and what you have mentioned seems like a "worst case scenario".I hope RTR will assist you the best they can and all I can say is learn from the experience and don't give up.Do your best to weather the storm and focus on minutia.Don't have regrets and don't spend too much time dwelling on the past.Glimpse into the past to get guidance from what you could have done better and think ahead.Move forward smarter, more experienced and better.Wishing you well and much success with your future endeavors.

In most RE markets rents did not decline (there are definitely exceptions such as Detroit, Las Vegas, etc., but most markets rents did not fall significantly).  

With a strong passion for hospitality and a commitment to exceptional guest experiences, I've launched this venture to offer premium accommodations that cater to the diverse needs of travelers.

Except, for a group that is only putting in 0.5% of the equity, taking 28% of the promote seems very out of market, to me.

Usually a thorough exploitation of depreciation with cost segregation, partial dispositions, various exceptions in Tangible Property Regulations etc.