Even cash-flowing properties could be undesirable for a bank’s risk appetite for refinancing.

I think my backyard (Northern Virginia) is too $$ for my current risk appetite so I am planning on going out of state, hadn't considered Baltimore until seeing your post. 

I think it depends where the passive investors are and the syndicator is in their life cycle of age and also investing.At some point as net worth grows really high the syndicator or investor might simply have less of an appetite for value add and move more toward (set it and forget it) investments.

Every building is kinda unique and each carrier has their own appetite so it's hard to make a blanket statement. 

Do folks think the rent decreases at the large multifam properties will eventually suppress the rents on the single fam and small multifam properties? 

If you are honest upfront with the tenants you might suppress some of that noise since they've been fairly warned.

Depending on your risk appetite, that may or may not be a good thing.

There are still rental deals available, although I'm not a big fan of CA from a risk/yield perspective or a tenant law perspective, but for people with different appetites (or really big companies with the ability to pass risk on to low-cost capital), there is certainly still enough inventory to go around.

Depends on your investment goals/objectives, risk appetite & whether you wish to be active/passive.

Find out if the bank has an appetite for this sort of thing.