The other option that comes to mind is to make it an addition to the 3rd floor and turn it into a 4 bed 2 bath two-level unit, but this is my least favorite option. 

Another thing to keep in mind is that the market in NYC is SERIOUSLY competitive.

I am definitely planning to value add in some capacity so I'll keep that in mind. I

The purpose, in my (new to this) mind, is not only for legal separation, but for taxable benefits and in large part what seems like the right thing to do.  

Keep in mind, I have made $10,000 up to $130,000 mistakes on some of my projects. 

The county has lost their mind, I left out a 0 it is a 450% increase.

I like where your mind is going?

Peace of mind is the last piece of the puzzle.

In my mind I want to file within a week AT MOST of rent being due.

Hey mate,Sorry to hear this and I feel for you.Been there many times before.I would always cut my losses as quickly as possible and swallow the frog.Move on more experienced and smarter and don't repeat the same mistakes on the next one.The loser deals teach us more than the winners do.If you stay "in it" longer, you will get dragged down by the negativity of the situation along with the toxicity of the folks you are working with now.Your time and mind is better spent focused on finding another deal/opportunity and growing because this is all "positive momentum" thinking.Not trying to sound philosophical here but just something I've learned over the last 13 years of my investment career and flipping thousands of deals.Wishing you well and a quick recovery 🙏