I.e. if Investor Equity = $1,000,000.00 and the preferred return or cash on cash distribution is equal to 7%, wouldn't the property's net income need to be equal to $5833.33/month to justify a distribution? 

COVID has been the perfect opportunity for many industries to justify price increases, even when they were hardly affected by it.

They do, however, attract more tenants and could justify a higher rental price.Best of luck to you moving forward!

I sort of justify it by building the stage in bolt together sections with plug and play electronics. 

I can tell you it's hard to justify kicking a tenant out for not buying insurance.Recommendation: 1.

With rents for both properties at about $3,000 each, I cannot justify spending 10% or $600+ on property management every month, plus the 1 month's rent fee to get them rented.

Also, you want to explore "best use" options to help justify the extra expenses.  

It makes sense to house hack in these expensive neighborhoods if you are commuting to NYC for a job/ salary that justifies living in an expensive area.

Then see if you use alot and can justify renewal for the second year.Terry

If you don't like the opinions that we share then it is pointless to argue your side as you try to justify it.