Did your rent rates increase due to higher demand or did they decrease along with all other prices at the time?

Your objective is to turn around the building, increase rents/decrease outgoing expenses, etc. by upgrading units (using private lender capital), and have an option to purchase the property based on the lower value.

I also understand that my cash flow may decrease to pmi.

As for stagnant/decreasing wages; I don't see that as an issue. 

Are rents decreasing,flat,increasing?

Many, like my sister, are moving back in with family, thereby decreasing the number of households in the market.

The property is a modest home that has decreased in value over that time by over 100k and approximately 30k less than the principle balance on the loan.

Our business plan will anticipate the decrease in occupancy as we move towards repositioning the property and bringing the occupancy up to a stabilized level, which is par for the course in a scenario like this.

But it also gets decreased by the amount of depreciation you take or are allowed to take, whichever is larger.

A macro model likely won't have the granularity to decrease variable costs when vacancies occur.