@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

The straightforward method is to do everything yourself, as in my example above.

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

HI Vince, as long as you are vacating your current primary home and moving into a new primary that is acceptable, but just make sure you obtain a 12 month lease in order to use the rental income to offset your mortgage payment and not getting hit twice for your current mortgage and new mortgage.

I bought the duplex for $145,000 which put monthly payment at $918 monthly.

Be careful about using your current home equity as a down payment on another property.

The letter also stated that the current landlord should have begun collecting payments toward to the security deposit upon receipt of the letter they provided me, which they did not. 

.: Hello,I have several SFRs that have lots of equity in them and I wondering if anyone used a method of cross-collateralization to pledge the equity as collateral, thus avoiding doing a cash-out refinance or HELOC.

This would lower your down payment requirements, lower your interest rate, lower your property taxes, and MAY make you exempt from state income tax.