It is not tax advice for your situation, which I have no way of evaluating.

What are your tips on finding and evaluating areas to purchase?

Should I re evaluate what strategy I should use and maybe look further out in places such as Rochester and BRRR properties out thereHey @Jared Leggett, I know I'm jumping in here late in the game, and I have to admit that I haven't read all the many comments you've gotten, but I wanted to provide what I imagine and glean is a contrary view.It is easy to dunk on NYC for young investors starting out, but if you are a first time homebuyer you can buy a $1M property with $35k down (+ closing costs which can be avoided with seller's concessions).

The current use of the property as a two-family dwelling significantly impacts its value and marketability, which is distinct from single-family homes.The initial appraisal comparing your property to single-family homes is likely an oversight, as multifamily properties are evaluated differently due to factors like rental income potential and investor interest.

What you would want to evaluate is the income generated from the income-producing property(s) to see if the income from your rentals would cover the cost of your new HELOC payment.

I made the mistake of consolidating nearly all of my due diligence specifically to RTR, and was less diligent when it came to evaluating their partners. 

The appraiser will need to come out and evaluate the new 4plex that you have and making sure you have the income to qualify for that new appraised value at 65-75% LTV and then you proceed with the cashout / rate term refinance. 

Then a Civil Engineer, an Appraiser to determine what having a four unit would be worth, then a loan using the evaluation.

I'd also recommend diving into books, podcasts, and even attending real estate events to start learning more.Here:Learn the Basics: Study property types, financing, and market trends.Network: Attend events, connect with pros, and build relationships.Find a Mentor: Seek guidance from someone experienced in commercial real estate.Start Small: Look at smaller deals or partnerships to get your feet wet.Take Action: Once ready, start evaluating deals and making offers.

Be sure to consult with local experts, evaluate cash flow, understand tenant laws, and negotiate with the seller for the best outcome.Good luck!