I am not going to touch the racism convo here, but will only make a point regarding this Gardena/Torrance comparison.

I would make sure to take all 4 into account in the comparison.

It'd be worth pennies to them in comparison to risking you doing a last-minute walk-through and refusing to close due to it being missing.

Equity split stays at 75/25 for 5 years, if (75% of the equity after 5 years) = (80% of the starting equity)(3) After we reach the point where I get out what I put in (2), all gains in equity will be split evenly between the two of use.g. if total equity is $100,000 after (2), and a month later it's $101,000, the increase in equity was $1,000, so Mike's total equity and my total equity each increase by $500This approach makes sense to us both, but having minimal experience in comparison to many of you on BiggerPockets, we thought we'd better sanity check ourselves here.

My case is a little complicated and I try to sort out the sequence of actions.

But BEFORE you make that decision, you need to get with your experienced RE CPA to do a side by side and apples to apples comparison of your cash out refi, what investment you get using that cash (and the returns from it) vs selling this as your primary residence (since you lived there for 2 of the last 5 years) and have a $250k exemption to capital gains tax (as a single person) and $500k as a married couple.

(In comparison, the tenant pool we target stays on average five years.)

However it's the structuring of how to buy them in sequence, the long term strategy, how to set up the business, I'm not sure what all goes in to a solid business plan for real estate.

What sequence should it be installed in the below? 

I used that specific number to make an apples-to-apples comparison to option 1.