Sounds like a bad situation.

There can always be a situation specific to you where your intent was to hold but something cause you to change that. 

First - Have a discussion if the rental loss will immediately help your tax situation. 

Here is the situation: I found a good multi-family home in upstate NY.

—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.This email is not intended to provide legal advice or serve as a substitute for legal research to address specific situations.

That shows real estate can be possible for anyone; in my opinion, I know everyone has unique and challenging situations, but in principle, anyone who can follow some basic budget fundamentals can save up enough for a down payment.Grateful BiggerPockets continues to bring more people into the industry!

Your situation is a little more complex than most people and I highly suggest you consult an attorney. 

@Rosmery ThenMy partner and I are in the same situation, just he has 20 years of construction and development experience.

But after an exchange - sign the purchase documents with one pen and pick up another pen to sign the refi docs :)Another strategy you could consider is reinvesting into multiple properties, where you purchase the first property cash (ensures some security and concentrates the equity) and the second property with a mortgage.

I'd recommend a HELOC for your situation, especially since there is already good equity in the project.