They want you to get your license though because your worth is significantly lower while you are not licensed because you're not allowed to communicate with other Agents about most things they might be calling the office about, nor accessing homes, nor talking to clients in anything other than a receptionist capacity.If they find you valuable once you start, they might ask you to show homes for them, or to do some of the work that they like the least. 

Reason that it has attracted me is because they yield is so good and cost is substantially lower.

They also have lower closing costs. 

Technically I’m buying a like kind property worth more than the property I’m selling just my purchase price is lower than what the property is worth.

I have a lot of family and resources in Pittsburgh already and the lower prices there are a lot less intimidating to me than here in NYC.

This calculation also assumes that personal exemption and itemized/standard deduction weren't used to further decrease the income.It appears the gain will be a lot lower resulting in a lower tax. 

That said, I'm tempted to present a much lower offer to the seller and attempt a cash for keys deal with the squatters.

Instead, we may just lower our offer.Any words of wisdom or suggestions?

There are places int he Midwest however, that will give you bigger cash flow, but potentially more problems regarding repairs (older areas) lower class neighborhoods (depending on how cheap you go).Indiana, Ohio, etc has some opportunity.  

That being said, I don't plan on living in NY my whole life, but want to find a way to househack so I can lower my living expenses while I'm there.