I would force appreciation if are able to add value, raise rents, decrease expenses and refinance asap to pull the free money out.

Decrease payments to a minimum which decreases monthly bleed?

Potential Refinanced Mortgage (we've gotten quoted info from our normal lender): 5.625% interest,  $84,000 balance (so lets say we get $25,000 cash out), payment goes to $816.23 so cash flow would decrease to $398.77 and would allow us to purchase an additional property that is my estimation could make up for the lost cash flow. 

How you finance it may increase or decrease your returns.

Also, you may have inputed something incorrectly, the loan balance isn't decreasing on the 'Analysis over time'.

It's more of an issue if they keep missing payments and eventually have to be evicted...but that can happen any time, regardless of a crash.The only major dangers I see are: a substantial decrease in rents and now your expenses are no longer covered (generally not a huge risk) or if you have an adjustable-rate mortgage (hopefully not).

According to him, there has been a lot of downward pressure on rent in NYC and that he's seen 10% decreases in his own rental properties. 

My focus is on decreasing maintenance, improving efficiencies and maximizing income on my existing investments.

Colorado saw a decrease in crime with legalization

Is this a secure strategy for decreasing vacancies?