The city has been trying to decrease density in areas it wants gentrified for a long time. 

I would at least recommend you have them shop a policy for you.One thing we did note is that with hail damage to roofs, they seem to be decreasing coverage/increasing deductibles on that if ever needed.

When this happens, inflation-adjusted rents tend to decrease.

Usually if it’s a revaluation where the whole town goes up in value you see the tax rate decrease and taxes stay the same or go up a little like yours did.

Better to concentrate on decreasing expenses and saving for now. 

I am seeing a decrease in nightly price and demand for these units.

YoY is up 3.5%.Rentals - Availability by MonthThe number of homes for rent decreased MoM, also bucking the seasonal trend.Rentals - Median Time to RentMedian time to rent increased in November to 30 days.

I understood that rent prices are decreasing.

Should we refinance now if rates decrease even just slightly so we pay a lower monthly while we see through these repairs, then once repairs are complete have home reappraised and take out this equity to buy next property where we would live while renting out our current home?

Good renovations done at purchase should decrease repair and vacancy cost.