For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses.

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.

It's probably going to mean paying points at closing, a high rate, and a serious pre-payment penalty (like 5 years). 

With that low interest rate, you will have paid down a lot of equity in the deal and should be able to finance with a bank.

If you pay off your mortgage (which is a good interest rate), you will likely burn through that cash flow as it is more accessible, AND that money isnt working for you anymore (unless you reinvested it).  

2. don't use an appreciation rate.

My question would be is a 6 cap the going rate in the area for that building.

Quote from @Dinesh Nair: I am a Canadian investor with a US corporate entity- we closed on our first property and now working to find financing through a lender… however rates keep changing all the time.. is there a site to track rates ? 

It’s quite appealing as a long term investment - even at today’s rates.

Shorter term CD's actually have higher rates than longer term so staying in the 3-6 month range is best.