Like a card player going into a game without sufficient reserves for a bad or misplayed hand, you need to bring money into this game or risk losing your shirt.

For landlords, the housing costs are lower while the rents are still sufficiently high enough that you cash flow regardless.Wherever you live though, I guarantee you someone is making money in real estate right there.

If they are taking action, is it sufficient to have the property perform per the budget?

This is known as the self-sufficiency rule.  

If it will then that should not be sufficient for the lender when I refinance the property.

Also make sure you have sufficient reserves to carry it if you have a lot of vacancy and or repairs.

Once you have these reserves and a sufficient downpayment you can pick up your next property and repeat the cycle.  

As Matthew Brill mentioned, there is a self-sufficiency rule for 3- and 4-unit properties funded with an FHA loan.  85% of the market rents on all four units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance).

You don't need a reason to not renew their tenancy, you just have to give them sufficient notice.As for the inherited tenants, when we inherited tenants we sent them an introduction letter a couple days after closing.

All of the notes where I found that the property owner and borrower that didn't match were first position.I also see the appeal in modifying a loan for an owner occupied underwater property assuming that you acquired the note at a discount sufficient to provide room to do so and still earn a profit.