@Jon G.I think the market is sufficiently hott right now in NYC, I would definitely let go of it, especially with these low interest rates.

But will make or break your FHA deal with a 3-4 unit......Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.

Above information which you would provide to the bank in a loan application would be sufficient for them to decide under what conditions they would finance your project.

Negative cashflows on rentals in Los Angeles is very common which by itself is sufficient cause to drive income driven investors elsewhere. 

We would market for three weeks to a month, if nothing happened, then okay, commit to the rehab.

Call them if it's not sufficient and have them come back or do more sanding but in generally they should know.

Why pay off someone else's mortgage/build their balance sheet when you can pay down your own mortgage and build your own balance sheet or, better yet, have three other people working hard every month to build your equity?  

Three 3 bed units, three 2 bed units and 2 units with either extra large bedroom or a spare room.

During the discussion i told him the three ties i came up with. knowing that i am interested in real estate he asked what would be the effects of an eviction.

I would also get the minutes from the last three months association meetings.