If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

So it does appear to be possible to get an FHA 203k loan for a 5-unit & convert to a 4-unit.When possible, aim for the Limited (aka Streamline) 203k loan, as it's less complex, not required to get an FHA consultant, etc.Of course, this is based of the two following important assumptions:1)  zoning allows for this2)  and obviously I owner occupy for at least 12 months3)  the total purchase price + renovations are within the FHA loan limits specific to my areaWhat I'm confused about is the timeline or chronological order of the process? 

Follow all safety requirements your Insurance Company plus city and county require.This usually includes childproof access and alarms.

High end customers will require Concierge services. 

I'm planning on putting 25% down because that is a requirement of the loan.

My experience has been that although I outline the requirements for tenancy in my properties, both brokers and PMs still send people who would qualify for most property owners but do not meet my outlined criteria; and then are SHOCKED when I reject them.  

My thought is to help him out by going in 50-50 partnership for many reasons: half down payment, half capex expense, strong co-signer on loan, me being local to investment property to take care of little things that need attentions (he will be out of state for his job/I will have PM), etc.  1. 

The interesting thing is appraisers don't often realize or give huge credit a new plumbing, new electrical, new HVAC despite these items being very expensive.

I'm kind of a purist, but I'm hesitant to put in an all new floor (pull up the old ones, level the new wood flooring on the beams) because A) It's expensive B) it's a loud, big job and I have tenants on the floor below. 

Hello Dana, For that purchase price in Brooklyn, NY, you could be looking at considerable unknown expenses at this point.If the property is occupied, you'll have to factor in attorney fees and holding costs while you wait to gain access to the property.Furthermore, you could be facing additional costs related to title issues: open permits, violations, liens, judgements, etc.