I don’t need to submit a No Tax Due Report?

Especially when my realtor insists that it’s a no-brainer deal in terms of the “extra” units.

The two could actually become one.It’s a no bueno situation.

What does Phill call a "no"? 

It looks like a no go for them. 

Do that before spinning your wheels on trying to be creative, because if its a no go then move on to the next one.

I've heard from others that the tenant base might be a little challenging so that's a no for me.

In short, this market has a huge barrier of entry and it is capital or very strong borrowing power and usually both.There are lenders who will lend to a no exp investor, but not some 500k Long Island property that needs 200k in work and will resell for 1.2 Million. 

Cost seg is a no-brainer unless you are going to sell the property in a year or two, you don't pay taxes, or have purchased the property for less than $200K.

HOWEVER, be prepared that an u/w may find the numbers higher than usual for the area and may scrutinize this further. if there is indication this is room-by-room, it likely will be a no-go, and you could end up being hit for the expense of the property without any income to help offset it on your DTI.