Now, agents are gonna be all over it and the pre-sale values are going to skyrocket and there's a risk that homeowners in the area are going to get savvy to the trends.

This is needed, especially at a time when housing costs have skyrocketing over the last 18 months.  

If rates, skyrocket by then, you have a 2% cap year over year and have some saving grace if better terms are not available to you.

From what I found in a brief search it looks like Vegas' population is still growing and the unemployment rate isn't currently skyrocketing.

Insurance is sky rocketing with less coverage, due to hurricanes I’m assuming.

Your utilization will sky rocket and refinance especially in this climate may not happen.

I PREDICT that when mortgage rates increase a percent or two that values will skyrocket in the short term because people will panic about getting into the market at low rates. 

Real estate pricing in my area similarly has skyrocketed in the same time. 

This is different than 2008 for many reasons, but in 2008 the currency was pushed into the markets which propped up the stock market and increased asset prices which is why over the last decade the price of assets (ie housing) has been skyrocketing.

The way I see these kinds of rentals is that $400 is peanuts, the real money is when they are paid down/off, and you're cashflow skyrockets.