Its a condo/co-op that looks like a town house: big house split into two with a garage.

It's coin-op and it covers my water and water heater costs.  

OP I like the question.

I used pretty conservative figures of 50% Op Expense with an additional 7% Vacancy, so there's potential for these to be a tad higher in reality. 

OP needs to research the doctrine of "lien marshalling" in OH.Junior lien holder foreclosing in the context of an over-secured senior creditor. 

The first year is the hardest and most confusing so it helps to go thru those growing pains if you have the ability to take a half day off work and check things out.  200 days is a lot of days...so make sure you model for the worst case scenario, not the best and remember most VR's run a 60-80% Op Ex ratio.

It seems that the only way to destabilize/deregulate a rent stabilized building at this point is to do a condo or co-op conversion.

What you're referring to regarding the requirement of 20% down is more strict for co-ops.

@Terrell GarrenWhat are the rental laws like in CA where I think OP is investing? 

So, that's an entirely different kind a of loan, basically not a residential loan if the property value is too low.I'm still lost.. in your op you are looking for a refi.