I don't normally do lease renewals, as it just seems to just be a reminder for them to consider shopping for a new place to live.  

This option intrigues because I have heard a few people on the podcasts say that they have rented to buy I just feel like the other one is probably the safer bet. 

I am about to start the process of shopping for conventional loan rates and getting pre-approved, but am concerned if I shop too much within a short time period it will adversely affect my credit score.Does every loan inquiry during the shopping process negatively affect your credit or is there a "grace" period after the first inquiry?

So this brings me to what ideas and questions i have: i am looking at a nearby new construction multifamily property (townhouse), where the area/location has great schools and convenient  to many amenities such as shopping and easy access to downtown.Also, this townhouse is a new construction property and should reduce or eliminate  my expense cost for the first couple of years due to warranties.  

As your quote above says, because there is more demand for that "Safer property" it gets bid up to a higher price = lower cap rate.Here is where many that formally trained in real estate but are not as familiar with creative deal making miss an important point.

It's can also safer to diversify your investment properties across the country.

The goal I am working toward is the cash out refinance and knowing that the bank can't call the loan due gives me some peace of mind knowing I can shop around and not rush the refi.Thomas S. - I could certainly pull up to the 75% LTV limited by the cash out refinance rules.

Also, we happen to know that the shopping center on the southeast corner of Berkman & Briarcliff has been purchased by an investor group and is poised for redevelopment when the current tenants' leases all run.

Shop around and get the best rates, closing costs (if any), and % they can lend based on your equity/appraisal. 

I suspect your vacancy rates will be higher based on section 8 C class property.You should not count on refinancing at 4% based on future expectations and would be safer anticipating rates at 6% or more.