I'd also suggest staging it a bit and you're good to go on at least recovering the cost and most likely increasing profit.Ditto on an interesting paint scheme and improved landscaping.

Once the competition gets filled up your occupancy levels might start to recover if the market is doing well in about 6 to 12 months.

Their units were generally in distressed condition and they had to put some investment in so as to rent them, and they had to keep them a long time to recover their initial investment. 

If the latter is the best choice should I cash-out refi or sell to recover my money for the next flip?

Can you recover your cost when you sell?

Such Sub-Prime lenders deserved and expected higher rates to compensate for the extra risk and the probable higher costs of recovering their money.  

(c) Except as provided in this chapter, a landlord may recover actual damages and reasonable attorney fees and obtain injunctive relief for noncompliance by the tenant with the rental agreement or Section 35-9A-301.

That puts you at negative CF in year one, and will probably take at least 10 years to recover the rest of the payoff cash. 

Yeah, if they are a PITA the rent can encourage them to leave, but with turnover there is costs that may take some time to recover.  

It should be restricted to the down payment only.2 - The terms you establish/negotiate for covering the rest.The number 1 goal of any rental property is to recover your cost (cash) ASAP...assuming you ONLY buy properties with positive CF.