Reliable tenants are the exception, not the norm.A common mistake is assuming that all renters are alike so the property type is not critical.

Thanks Bill for you invaluable insight.Are there any exception to 12 months residency for primary home loan ie change in school, job. 

. $25k down does diddly-squat for that except in the handful of markets where one can buy a house for the cost of a garage in most other markets.

The only exception to that is the Eastern Panhandle near DC.I’m not sure about this specific deal, but knowing the location and little to no cash flow, no way I would buy this. 

There are definitely exceptions to what i just said.

Even the NY Fair Housing page says 4 exceptions, with one of them being "one- or two-unit owner occupied buildings."  

I agree except some clients I already have at limited service will not cash flow at full service or need material participation. 

Would I rather own an AirBNB in Galveston for the next five years where a permit currently costs $250 a year and a correctly bought deal can still perform exceptionally, or in NYC where I can no longer operate now and for the foreseeable future?

There are some exceptions (usually when offering on portfolios, I don't see inside each one before offering, only during due diligence; and I state my assumptions about their quality beforehand). 

(This restriction does not include interest on the loan.)A lender issuing a home equity loan may not require that the borrower apply the borrowed funds to repay a debt, except for debt secured by the homestead or debt owed to another lender.