Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

Class A properties are going to cost you more, have lower cash flow, yet be more attractive to a higher quality tenant base.

I own a LTR in central Houston that I think would be pretty successful as an STR based on the AirDNA data.

We are based in NYC but are considering (as of now) locations outside of NY but within a 300 mile radius. 

I never thought about maybe they are assessing it based on wrong fundamentals such as you said.

LLC offers better legal protection.3) Setting up in states that allow your identity to be hid is also overblown.

They use demand-based pricing like anyone else who cares about revenue. 

Offer much less than zillow says .

When an appraiser is adjusting a comp to match the subject property, he or she will use an adjustment based on the difference in square footage.

As the state capital, it boasts a strong government and military presence, supported by the nearby Air Force Base.