I've seen successes, but I've also seen some catastrophic failures.

My wife bought a property here in 2005, close to but not quite at the peak (She got an insane offer in '07 and regrets not selling) after a catastrophic burst it has slowly regained value and now seems to be worth around 80% of its original purchase price.

I know I need to have it inspected so I know what I'm getting into in case of leaks or other catastrophic issues.My fear is others will not have inspection period just to get the deal.

Exceptional places like southern California would obviously have their own draw, demad would always be strong barring a catastrophic event.

Carriers simply can’t survive paying these higher prices without charging more themselves.Litigation is expensive and settlements are rising at an unprecedented rate.ReInsurance (the insurance your insurance carrier buys to help cushion catastrophic loss) is at or approaching capacity in many markets, and rising rates are unsustainable.This is a significant issue affecting the property & casualty industry (home/Landlord and auto), and pricing correction is anticipated at least through 2024.

Here is an example, if my portfolio crumbles due to something catastrophic or unfortunate, who cares.

Some look beautiful, only to have the inspection turn up catastrophic issues. 

You just don't want to make any catastrophic mistakes - something like buying a house without an inspection when you don't know what to look for,  or buying a house with no reserves can put you in a situation with a much worse outcome. 

I also have a $175,000 line of credit ready if something catastrophic happens.

Your expenses are going to be basically fixed, and the only way rents are (probably) going to decrease in the greater NYC area is due to a lot of new supply, or some big economic event/natural catastrophe/terrorism etc. that makes living in or around NYC suddenly undesirable.