Just to keep it real - its good to remember that for most properties you need a 10% increase in rent, to negate a 0.5% decline in value. So, for a 5% decline in value, one would need rents to double.
That may be true, but I don't know of any investor who would look to rental income to make up the shortfall of a "paper loss" on an asset's capital value
I think you'll find they just ride the cycle up (and down) without worrying too much about the month to month valuation on an IP.