If the rules are violated and you were lazy-fare in addressing the violations, YOU become directly responsible legal and otherwise.  

Homeowners, your tenants ARE RESPONSIBLE IF THEY VIOLATE SANITATION RULES, phone 311 to report them.Dont let nwo mafffia dictate otherwise.

I'm seeking advise from people who may have been down this road before on whether we should seeking other financing methods to go LLC to LLC or quit claim the lot back to our personal names to satisfy the 1031 exchange rules. 

There are a lot of rules to follow, but make sure you have a great custodian. 

This is very much a learning process for me 50% rule, 2% rule so on so forth.

It's an amazing market to be in because you can still find the 1% rule and positive cash flow while getting amazing appreciation potential.

I see what you're saying about the 2% rule. 

Weirdly, you may actually be able to get better terms and/or more LTV on the refinance if there is debt on the property as lenders have rules for max cash in hand (max proceeds you get at closing) for cash-out refinances.  

If you stick to the 1% rule you should be around that number.  

Hey @Joel Oh, so let's clarify the NYC rules around STRs.STRs are legal in NYC as long as these directions are followed."