I am sure many would  consider other investment strategies besides  continually recycling their capital collecting  homes that are propped up with appraised values that are not attainable if the properties were marketed for sale.   

The coastline continues to grow and with towns like New London working  to build up their infrastructure to draw in more business and ultimately residences, it feels like the area is heading in the right direction overall.

They also have the ports (or in the case of D.C. the government) which means they will continue to be very important economically for a long time.I invest in Rochester, NY because I happen to live there, but when Kodak went "under" and Xerox moved there was no appreciation for almost 20 years. 

The hype continues while the marketplace has cooled.

I will continue to look into that!

She had an attorney representing her during yesterday's hearing, and the case was continued for trial.

So, you may continue.

And when you do take a loan against the policy's Cash Value, the Cash Value continues to grow (since its only serving as collateral).

Are there specific pros and cons I should consider when it comes to refinancing, forming an LLC, or even continuing with the rental given the negative cash flow?

The real estate investor has advertised on this site, and continues to advertise joint ventures and private money deals in multiple states.