How do the comps compare to your property; number of bedrooms, number of baths, updated kitchen and bath, finishes, and most of all is everything done.  

How long have you had it listed for rent and how is it priced relative to comparable rentals in the neighbourhood? 

And do you think I can even compare the 2 property's? 

I do feel that for a buy-and-hold investor like myself, there isn't much difference with these types of properties compared to SFHs if the numbers work. 

Especially compared to the Bay Area.  

It seems a better comparison if you have a couple of specific term sheets from lenders which you can compare.

We offered $375,000, and all the surrounding properties in the neighborhood with comparable beds/baths are valued at $5-600,000+ (according to Zillow), so it appears we have a bit of opportunity for forced appreciation.

They will likely LOWER than net overhead as compared to renting in most parts of NYC Metro, but they shouldn't expect to "live for free". 

I was chided for "giving legal advice" on another post when I was telling about my experience, so that this does not happen again I'll say I am not an attorney, just a regular investor passing along what I was told so you could compare it to what you have been told by your attorney. 

Im not an RE professional nor do I have a comparatively large amount of experience to the others in this forum, just putting in my 02 cents from what I have experienced.