It's hard for me to fathom that this minor of a factor could be the thing that stops us from pursuing our real estate investment dream together, and although I am feeling down and close to giving up after today's news, I know that I can't. 

The rule in lending is you will always get a lower rate and a higher LTV loan to value on your primary home.So if you tie up money in a smaller investment and then need cash your limited by two factors the loan size and the Non-owner occupancy if it s a rental you get a lower LTV.

Some factors to take into account will be the overall condition of the property and current rental income in comparison to market rents (comps).Queens has many SFR with liveable basements so you may be able to find someone willing to househack and keep the current tenants but you'd be working with a very specific buyer pool and this could lead to less interest in the home, a lengthy selling process and a below-market selling price.With regards to giving notice to the tenants, assuming you're going to aim to close when their lease is up in April, I'd mention it 30-60 days before putting the property on the market.

You make some great points about growing job markets and other factors that could be promising.

@Mitch Vogatsky be sure to factor in your mortgage interest tax deduction when evaluating how much you can afford.

Even after factoring this in you should still be able to cashflow $400+/month but your COCROI will drop a bit. 4.

That makes a ton of sense the idea definitely sounded simple but definitely has many different factors that go into it.

Another factor is whether the loan is recourse or not.4. 

To me, this is the most critical factor in your decision on whether or not to invest in multifamily syndications.

If your price comes out to $40k with you doing only some painting and landscaping that is great, but did you factor in some construction reserves in case you hit other problems?