Make sure the system is property sized according to fixture units, velocity ,and friction losses.  

Does anyone have real experience owning and operating multi-family rentals in Brooklyn and is willing to shed some light on the market and provide some pointers on how an inexperienced investor like myself doesn't find himself at a loss? 

Recovery of your investment in the rehab would typically be through the sale of the property and split of the profit (or loss).

You make your money when you buy...you realize your profit when you exercise your exit strategy down the road.If you do anything now, rationalizing on future events you have no control over, that will recover your loss (overpay) at purchase, you lose.  

Define your requirements, taking into consideration the realities of the market (Austin is heavily weighted toward the appreciation play at this time).

I have a full-time job and my initial reason for acquiring a multi-unit property was in order to live for free aka house hack and, more importantly, to write off the expenses (renos, mortgage, etc) in order to get more taxes back at the end of the year.When "pitching" a portfolio lender, does it hurt you if you have been breaking even or reporting a loss for the above stated purposes? 

I know the general feeling on the forums is either (1) fire him / cut your losses or (2) suck it up and move forward as some of it is my mistake for not insisting on receiving the plan (god knows if they're even following a construction plan). 

So, as a newbie, I give weight to the opinions of people that have more experience than I do (which is why we're having this conversation).

And flash forward 17 years later (a few years ago), and I finally sold them for a loss, due to the expense of fixing them up for sale and the time they took to sell.

If you have the cash reserves and/or high income to absorb such a loss, you're ready to go.