Quote from @Trevor Finn: Hey @Jordan Laney,Oof, that's a tough situation.

@Kolby Knickerbocker, It can be a tough thing to give up an advantageous interest rate. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $8,000

Cash invested: $20,000

In 2013, I put my knowledge into action by purchasing a two-bedroom home for $8,000 a...

The market is TOUGH right now for LTRs and STRs.Hope this helps - we are trying to protect you.

I've been there, and it's important to know you're not doing anything wrong, it’s just a tough market right now.

Tough situation.Sounds like your mortgage forces your hand. 

It's a tough business, but admirable! 

What kind of ROI i should look at, considering project completion will be 3 years roughly?

Here is a video that runs down the basics - https://s-media.nyc.gov/agencies/specialenforcement/01-Legal...There is also a prohibited building list - https://www.nyc.gov/site/specialenforcement/registration-law...Here are some more info overall - https://www.nyc.gov/site/specialenforcement/registration-law..All of this makes STRs in the city pretty tough but it certainly not impossible.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money.