Since 2020 we've seen large asset value increases and large tax increases, and more modest insurance increases but we've been able to improve our profit margins sufficiently to keep up with inflation and even do a little better in many cases.

Even if I were to rent it out on Airbnb, the cash-on-cash return isn't very attractive.Specifically, I’m concerned about:High mortgage payments and the financial strain it could cause if the property doesn't generate sufficient cash flow.Cash-on-cash return is low, even with high-revenue short-term rentals.My Questions:Risk Mitigation:Any strategies I can use to mitigate the risks associated with owning a high-value property with a large mortgage?

If the appraisal came in at the price what was not sufficient for them?

I would check your cash flow in relation to that $55k number to see if it's sufficient for you.

Isnt it sufficient using apps like Stessa or Avail or Rentprep etc etc?

I believe if people make money and there is sufficient housing supply, housing will become affordable. 

NYC DOB considers a shelter a 'community facility with sleeping quarters' and may require a special permit for this use.Thanks Abel, You provided me with the right search terms to dig deeper. 

Dont sleep on it.

That experience taught me to always overestimate CapEx and vacancy buffers... it’s much easier to sleep at night when you’ve got those cushions in place.From what I’ve read in Bloomberg, these challenges aren’t unique, especially with rising rates.

Duplexes are a little easier than 3-4 units with FHA since they don't have to meet self-sufficiency requirements.