There may some merits to investing upstate/western NY, but I would suggest doing some serious homework into eviction timelines, annual rent % increases, etc. 

You Can Only Have 35 Non-Accredited InvestorsRule 506(b) allows an unlimited number of accredited investors but restricts you to only 35 non-accredited investors.However, there’s a catch:Non-accredited investors must be financially sophisticated.They must have enough experience to evaluate the investment risks.From the SEC:“Securities may not be sold to more than 35 non-accredited investors… [who] must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment.”If you’re planning to include non-accredited investors, make sure they qualify—or you could be violating SEC rules.3.

While it may not offer as much diversification, at least with a syndication, you can review the specific merits of that particular deal.Also, the fund operator typically has different motivations than the syndicator.

I think both of your strategies have merit, but here’s my take based on what you’ve laid out.Moving to a rent-stabilized apartment and renting out your condo as a mid-term rental could be a smart pivot, especially with its location near a hospital and LGA.

I have  heard through bigger pockets podcasts that NC has merit.

Especially when I have in writing no appraisal was required.Seller is threatening to sue and keep my earnest money doesn’t add merit to the situation.

Both active and passive strategies certainly have their merits.

i'm just saying - that doesn't rise to the level of meriting "partnership." 

Both approaches have merit.

(Not judging the merits of the deal, alternatives, etc...)