@Ben Bruckman - I agree with @Dave Foster that refinancing on negative cash flow is a recipe for disaster!

@Dave Foster Thank you for your reply Dave!

@Vance Foster definitely, some of the multifamily is a bit overpriced, but those are usually the ones that have been on the market awhile. 

Quote from @Dave Foster: @Susana Rivero, the 1031 exchange everyone is mentioning would allow you to sell that property and use the proceeds to purchase different investment property without having to pay the tax on the profit from the sale. 

@Dave Foster, thanks for the info, I greatly appreciate it.

We (for profit co.) rehabbed the properties to house foster kids and state wards for our non profit entity.

@Justin Foster the best way to create WIN-WIN deals and make the max amount of money while doing it is to know exactly what your buyers would pay for that specific property in its current condition.

@Dave Foster Let me see if I understand this.

Thanks @dave foster .

The returns in my 2nd Scenario with a 20% down payment and 80% LTV is just about what I normally do and the Appreciation Rates is a little bit higher than what you achieved from 2007 to today.An example would be a property I bought in Clinton Hill Brooklyn in 2004 for $890k is now worth $3 Million today.A second example is a property I bought in Bed-Stuy Brooklyn in 2014 for $900k, renovations of $375k, now worth over $2 Million.I've done this 8 times consecutively and by intelligent decision making.I think that you can look at certain up and coming neighborhoods in NYC that are primed for future appreciation where you can still buy in should you decide to house hack it.I included David Foster in this posting because I think one of your option is to do a 1031 exchange into another property if you feel your area is currently peaking.