@Dave Foster   @bill ExeterMy view is without violating any irs rules your best option may be to live in the property 2 years and use the exemption.  

What I've found is that it offers too many configurations and if the user isn't aware of what the outcomes are, it can actually make them loose more money faster.

I've done a lot of research and even worked on running numbers for certain options (just as an exercise), but I'm now looking forward to jumping in.

There is a ton of fix and flip going on in Brooklyn and I am trying to work my confidence towards that after my first project at a lower price point around 300K somewhere (CT seems like my only option). 

So, the actual increase to market rent will be much lower.

Property values continue to grow in value, and you can actually live off the rental income.I think it's best to hav all properties paid off by retirement age, since that's when you are going to rely on cash flow for your living expenses.

Can your property actually afford a 90% LTV loan at 8+%? 

Leverage is key and the diversity of options is also good.

What ever the Contractor proposes you should not take as the only option.

In many cases, this solves your problem, either they start complying or they actually move out!!!!!