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).

Guest Policy.  5 people is bad enough, now imagine all 5 trying to bring over their boyfriends/girlfriends for overnight visits or move in with them. 

Random things like this.I can only imagine if they did allow you to add all the bedrooms, they would make you also add fire sprinkler system and a commercial fire alarm system like residential assisted living. 

I can't imagine what a unit would look like if the renter supplied the appliances.

Imagine someone harassing your girlfriend, damaging your property, using or selling illicit drugs, dog biting you or your other tenants and creating a flea or noise issue, or any number of other potential issues.

I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

I can't imagine how difficult that is for you and your family.

They make their living from this work and deal with more hassle than you can imagine, based on what I know from some of my realtor friends.

I then poured another $8M into it to bring it back to its former glory by selling every asset I own. 

I can imagine if you want to purchase something, there's thousands of other areas to choose from where you wouldn't be losing so much money.