Many times, if your gut has already led you to a point where you're considering doing something, the downside is less than you might originally anticipate. 

You have guts and you don't hem and haw!

I would be in a good spot with equity, but my instinct is that I should hold on to the property.

It is a 1970 build under 1000sf/floor, and in need of complete gut, is short of FHA qualification (right now) which is why it hasn't moved.

As the entry point in NYC is so high ($1-$1.2), the type of house I would be flipping would need a full gut renovation and my conversation with any of the banks is that they would only lend to a house that is livable now and I would need 30% down.

I am looking for a private lender to finance my rehab on an already owned, gutted property in a desirable neighborhood of the city (Upper Lawrenceville): demo complete, structural engineer sign-off, architect-approved design to move the stairs (which is not a small deal in Pittsburgh), and city permit.

That was my first gut reaction.

Paying attention to the utilities usually tracks with the legality of units, so trust your instincts there.

Anyhow, gut feeling tells me this is a preview of the future. 

We may be buying and completely gutted house soon and hope the things I want inspected (basement walls bowing, sewer pipes, and basement floor) don’t turn out to be too expensive to fix everything should turn out pretty good for that property as long as comps support it.