I don't see you getting a huge amount of cash out of this property with a new loan, anyway.

A and B class neighborhoods have better schools which comes with higher property taxes and higher turnovers.

I have an interesting situation with a now former tenant that has come up.  

ended ended up at retirement with 0 - $500,000 in net worth from real estate investing.  

Not a good one to go with.

Florida scares me with insurance issues and constant threat of hurricane damage.

Certain lenders can accept higher than 50%, and may be able to execute even with an exception. 

I agree with @Aaron Zimmerman—setting up your chart of accounts to align with Schedule E/1040 or 1065, depending on your type of entity, will again take some of the heavy lifting come tax time.

Generally, the downside comes with added complexity with partial disposals among a few other things. 

The main thing is making sure your investments produce a return that outweighs the cost of the borrowed money.A full cash-out refinance could work down the line, but with rates where they are, you’d be trading a 6.25% ARM for something likely higher, now that it is not an owner-occupied property, which may not be worth it unless you really need the capital to scale.