Given the state of the economy, dropping stock market indexes, I am looking at refinancing my properties with cash-out refinances.  

I think this is an amazing idea with the Tom Brady news. 

Leaving them trapped inside.https://www.thesun.co.uk/news/10925668/coronavirus-patients-welded-homes-china/Not so in America though, where most doors a wooden: https://www.youtube.com/watch?

Treasury Secretary Steven Mnuchin warned Republican senators Tuesday that the coronavirus pandemic could drive up US unemployment to 20%, a Republican Senate source told CNN.Mnuchin's comments came as he urged Republican senators to act on economic stimulus measures totaling $1 trillion designed to avert that kind of worst case scenario.In the same meeting, Mnuchin also said he is concerned the economic ramifications of the coronavirus pandemic could be worse than the 2008 financial crisis, the source said.Mnuchin's comments, which were first reported by Bloomberg News, come amid a rising sense of urgency at the White House and on Capitol Hill to confront the increasingly serious threat of the coronavirus pandemic — on both the public health and economic fronts.

I'm guessing your state is next... https://www.kansas.com/news/politics-government/article241290866.htmlI'm assuming we will all have to roll back payments into some kind of loan/debt which tenants will get to pay back over time?

Not sure why you think values will drop.

I am able to drop my rents considerably and still make the PITI payments.

I anticipate that all of us are going to get some late rents and we'll need to be open to working with our tenants by allowing more time, temporarily canceling late fees and maybe by temporarily dropping the monthly rent for a month or two. 

Do i need to be wary of houses that have been on the market for 2+ years and have dropped the asking price by 40+ % in that 2 year time period?

I would not drop what is in the initial fund, but if she has no interest in learning about investing, the lifecycle funds are a fair option as an alternative.