Florida's West coast or Austin TX are seeing 5+ months of listing inventory and declining home prices.

Yes  I think the best move here is to asses your total monthly debt and see if a cash out refi will help decrease the total interest and monthly debt obligation.

Most borrowers I speak to are just assuming that rates will drop off the table in a few months.

San Diego SFH rad average rent increase of $600/month last year (source Core Logic).  

It was usually for a month or so and if they had funds, I let them in.

If you know that a 2BR single family rental averages $1000/month in your market and someone tells you they have a good deal for you on one for $175k how much time are you going to spend analyzing it?

They are all on a month to month agreement and have all been there a year or more.

Fannie/Freddie now have a rule that if you are doing a cash out refinance, the loan being paid off has to be at least 12 months old. 

You need to be aggressive with your pricing to compete for the few available renters.I recommend dropping our price to $1,750 and offering a month-to-month lease or six-month lease.

And to pile on, if you didn't own this property, then you would be paying $700 or more in rent each month to live somewhere else.It's nice when you can find a hack that allows you to live rent-free, but that doesn't happen often.