Most lenders do not like these lower property values because they are too risky of an asset class, little return in interest and fees, and long term financing will be an issue as well.

Long-term tenant that always pays on time.

How would I analyze a deal in a market where the rents are capitulating and is unsure how much or how long it will continue to do so?

If you plan to stay there a long time 10+ years then likely the value will be the same or likely greater even if prices soften in between.

My first post on BP, I've been a lurker for a long time.I sold my e-commerce company last year and have been doing some real-estate investing, I've bought and fixed up several personal homes over the years and have always wanted to get into real-estate investing.I live in CA, and I bought my first investment property in Temple Texas at the beginning of the year. 

If long term holds aren't working right now because of high interest rates, maybe look into mid-term or short-term rentals.If mid-term or short-term rentals don't work for a property or market, consider simple fix and flips.If entry prices for simple fix and flips are too high, maybe look for major renovations. 

The microscopic distance of the attic vent, insulation spacing, the smoke detectors not being in sync when 1 rings etc. 

However, the good news is since you've owned the property for over a year it will be considered a long-term capital gain which holds a much lower tax rate than if you owned it for less than a year.  

You get your money without the tax hit at the moment and hopefully continue to profit off them,   If the objective is long term passive income, it doesn’t make sense to sell them… it moves you away from your goal post.  

If you're open to short-term rentals, that could be one option.If you're looking more at long-term renters, you (or your realtor) can negotiate seller credits into the offer and use those credits to buy down your rate.