The original borrower they could go after though for a deficiency is my understanding but it’s a state by state situation.

On the other hand, I've seen in southern CA huge developments with HOA fees of 200 a month, with swimming pools, common area facilities that members can use, fitness rooms, etc. 

Since it’s my first time dealing with the “crawl space” situation, are there any companies with a NYS licensed that can do this type of rehab?

But like everyone says “better late than never” And I take my life as positive in every situation, and keep moving.

Your financial situation will often determine what financing situations will be available to you.

I love applying very systematic ways to calm my brain and think rationally through a situation. 

I'm currently in the same situation and would appreciate any feedback.

On the downside though, this creates a much trickier lending situation, given the increased vacancies, especially since the property doesn't have that many units to begin with.Given that we haven't yet closed on the property, what's the best way to proceed?

It may be a great opportunity for the smart long-term real estate investor to use the trade war as another tool to analyze and take advantage of the situation.

Every situation is different but although carpet will be the cheapest option I would not resort to it unless I had to.