I also rent in NYC which heavily favors tenants so my risk is two fold. 

We decided not to go down that path because we felt assisted living was less risky from a regulatory standpoint. 

Although to just do a few flips a year and how to buy a rental not sure thats a value proposition.

From a lenders perspective, it is typically too risky to offer someone more than 75% on  a cash-out refi.

Then I would really advise against it bc sub2 is not easy and mostly for people who cannot get any mortgage and it’s risky. 

The former provides a much lower return on equity but is simpler and easy to achieve over the long run.The latter is much more time consuming and risky, but provides high returns and a lot of tax advantages. 

Sit the sidelines and take the risk or purchase RE and take the risk.  I

The actuaries realize they have too many policies in one area and the insurance companies want to reduce risk and spread risk.  I

Plus my value proposition is that these units could be rented out at $1500/month.

🧐If you don’t get enough response from this thread, simply reread some old threads they can get pretty long.  90% of the risk is to the seller..