The rent you charge does not go down even if the home value decreases.

This should decrease the odds of being a bad deal.

What we would pay out of pocket for mortgage would decrease by about $200.  

Now, if rents don't cover costs or if you think the market has a good chance of decreasing, flipping probably makes sense.

I know plenty of people swear by it   But that’s following the crowd to me  https://spectrumlocalnews.com/nys/hudson-valley/news/2019/05/09/newburgh-police-celebrate-drastic-decreases-in-violent-crime--plan-next-steps-for-a-safer-city

Since your mortgage is lower you can stomach a rent decrease and still have a better shot at staying cash-flow positive.2.)

Furthermore I believe the necessity to work in crowded downtown areas is only going to decrease as we become more mobile as a society.  

Anything is possible, however it's not likely for rates to continue decreasing, especially not in the long runThe pro of an ARM right now is that you can save a few dollars on interest, however the negative is that you'll be far more exposed to rate changes in the future.

When I decrease the radius to a more street to street basis I am surprised to find some great little neighborhoods.

If your ROI is greater than 8.75% and you have cash reserves to offset the decrease in liquidity, go aggressive and keep expanding (if allowed by the bank).