It has a lot of out of state owners who have hired really bad local property managers which have devalued the area for a long time.

If you're giving them the money back, you remove their risk and you live with the devaluation of your money.In his latest book "Changing world order" Ray Dalio gives an excellent explanation about who takes risk when looking at assets and lending.

If something is "scary" enough that you wouldn't buy it on its own, remove it from the package or seriously devalue it and then sell it at the first opportunity.I'm concerned you are "cash poor" despite owning four rentals for eight years.

There will always be someone willing to be cheaper and devalue themselves.

Did Wall Street design the failure that devalued properties and made it improbable for most to refinance and sticking it to them first?

A large REIT can't come in and devalue you. 

It’s growing at a faster pace and devaluing my debt.  

Even though you area may not support full duplex style house hacking you CAN find a devalued, single family, fixer upper and house hack that way!

Looking it another way, with $1MM in total equity, your investment is immediately devalued 8.5% when you put in your investment.  

They can devalue the place with harrassment all on their own.