We would have trouble cash flowing if we were to do a cash out refinance with the current interest rates.

Almost any $65k property in a Midwest city is going to be Class D or need $20k+ in rehab.Class D means you'll only get the worst tenants, who have a high rate of eviction for nonpayment AND they trash the place on their way out.You MAY get lucky and get a S8 tenant for your Class D rental, but most of them will want to live in a better neighborhood.

I am assuming something similar would happen to Americas credit rating? 

Unless rates lower it may be status quo.

Good question, I don't think I'll get the rent I need for the PITI on the place at a long term rate.

Quick increases in value are hard to come by, unless the area gets really hot and interest rates drop a lot, creating a frenzy.

The rents are high enough so they can cashflow, even with the 7%-8% rates we are currently seeing.  

Also if I’m renting them separately, shouldn’t I get separate data (occupancy and nightly rate)?

It’s a tough market out here in New Jersey both with this high market and the high interest rate right now.   

If you are using a hard money lender, are you accounting for the high hard money interest rates for those months?