The approaches you’re discussing are extreme for temporary and changing assets.    

But I’ve noticed the trend decreasing fortunately.

I would decrease my cash flow (not accounting for maintenance yet) on the property A. 

While this rate adjusts there's customarily a floor built into the loans and it's unclear how quickly the fed rate will decrease.  

Even if you moved to a less expensive home in the same areas, with the current interest rates, you are unlikely to decrease your mortgage payments.

Since I always kind of viewed depreciation as sort of a 2-edged sword, or a temporary blessing from the IRS, I’m still trying to wrap my mind around why this gets added in, since it gets recaptured upon selling the property.

If your ARV is accurate though (and I like that you're being conservative) you would need a 10% market decrease to break even.

There are greater risks relative to an option like Flourish which is strictly capital preservation, and temporary illiquidity is one of the drawbacks, but if you are selective and do your due diligence I think you can achieve the desired result.    

The price decreases are due to both the decreased returns to investors possible at a given price point as the cost of debt financing increases, as well as some dumping of assets due to redemptions (looking at you, Blackstone) and the inability to refinance properties that had been purchased in 2018-2021 with high leverage floating rate debt. 

Thanks Yes, property insurance is an operating expense and decreases your NOI and cash flow.