They just let me know I wont be receiving rent and the reserve accounts have been depleted. 

I really appreciate it If you can pay in cash and not deplete your liquid cash below your emergency savings bucket, I would go cash right now.

So adding one more unit to a duplex may deplete equity gain even if it improves cash flow over here. 

I depleted my savings when I stupidly renovated a house on which I'm not the sole owner on title.

By using your savings,  you will be depleting that reservoir of money,  and after 2 flips your snowball would fizzle out. 

I wouldn't recommend an all-cash purchase, especially out of state as this will deplete your cash reserves (please don't go buy an $80k rental in the hood :-D ).

I've read/heard it somewhere that you should just refer to it as an additional deposit so that you can use the funds for non-pet related matters if the issue comes up and the normal deposit funds have been depleted. 

If you spend it on unpaid rent or maintenance along the way, you'll deplete your leverage.2.

Arizona's water supply from the Colorado river is being depleted faster than it can be replenished.

Anything goes wrong and that $29k depletes fast because itistoo smal, for this side effort - my rule on value adds is they must add value 2x minimum because they have risk and require work.