To cash out with a .75 LTV and new 6% interest rate, monthly mortgage goes up significantly and my cash flow significantly decreases to a few hundred dollars.

As far as does your liability increase or decrease in any of these scenarios, that's a legal question. 

I would probably just monitor the levels for a few months to see if the levels are consistently decreasing or not.

Here in Las Vegas, we are already seeing some big price decreases for houses that need to be sold (divorce, moving....). 

If you price right, many like to stay for up to a year decreasing the amount of vacancy. 

With the rise in interest rates, we are seeing price decreases on MF properties, at least here in Ohio. 

If you take the initiative to look for commercial real estate outside of your local area, you are more likely to see decreased competition, easier deal negotiation, and you will probably be able to snag the property you had in mind with better terms than if you'd pursued a typical listing.

Basically we saw the cash flow as a measure of decreased risk.

So if you’re saying that cash flow will decrease for the property you are cashing out, that’s correct most likely.

You can't decrease services so if you pay a utility per the lease you have to pay it until there is a new lease.