Since the value of the property increases as the NOI increases and the cap rate decreases, a property with $100,000 increase to the NOI in a 9% cap market will have a smaller value increase than a $100,000 NOI increase in a 6% cap market.

Even if interest rates go up, your monthly payment may still decrease as you'll have been paying down your principal so your new financing will be for a lesser amount and over a new amortization. 

Typically we are thinking of price decreases affecting your returns and prices in a single area are likely to be highly correlated.On the other hand leverage increases variability (risk) linearly. 5x leverage means 5x variability.  

I feel like regular units would decrease my cash flow. 

Albany hasn't seen the population decrease that other upstate cities have, but it's not attracting people, either.

I do not have the reference, but was just told by someone knowledgeable that the percentage of California short sale approvals has actually decreased since requiring negotiation only by licensed realtors.

At some point you can start using the law of large numbers in your own favor to decrease your cost, though not being an actuary I have no idea at what number that is.

Since then they have had rate decreases, the last one 3 months ago.

Are the values in area continuing to decrease?

This will further act to centralize health care into large corporations, further decrease physician reimbursement, and significantly increase the rationing of health care.