By the time you take out a trad. cash-out refi, you'll be eating a bunch of fees, which will chew into your theoretical 5% arbitrage spread. 

Everybody's gotta eat, right?

Stealing food from a gas station to eat is a CRIME. 

When they do, they are typically covered by insurance and settled outside of court.The odds of a landlord being sued for a large enough amount that it eats up their insurance, the equity in the investment, and their personal assets is almost non-existent.

Personally I would chalk this up to making a mistake not raising it more the first time...eat the mistake and maybe raise it again in 6-12 months.

We also have pretty high property tax bills (around 2% of the purchase price/property value) that eat into a lot of the rental income. 

You will need to factor in rehab costs, which could easily eat up another $50-75k depending on the condition.

Sometimes elephants must die so lions can eat.

However, everyone's gotta eat, so we'll be giving restaurant gift cards as a "thank you".Do y'all have any plans?

Taxes, interest, insurance and maintenance will eat into the profit. 2.