Someone might be willing to purchase with negative equity if they are able to take over your <4% rate with basically nothing down. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Once that phase is complete, I’d transition back into long-term holds.As for the cash-out refi, without at least doubling the rent, I’d be in a net-negative position each month, which doesn’t seem like a worthwhile trade-off.On the tenant side, I agree with your point about the business aspect—it’s something I’m working on coming to terms with.

If you are too busy to go see a whole bunch of properties in person, meet PMs, and help with getting your first property stabilized... you may want to wait until you have more time.Not trying to be negative, just realistic. 

Today poor means negative cash flow.  

i agree that a new purchase at 75% equity will typically not have significant cash flow and may even be negative when properly allocating for all expenses.Investing to max equity without reserves is risky and you indicate would result in stress.  

As a couple others said emergency would negate the $500 threshold but they should contact you to notify when it happens.

I need help finding statistics of appreciation, population growth, job growth.California of course has great appreciation and limited competition growth with high house prices making renting almost a necessity but I worry with more people leaving California then coming in this year that Phoenix might be a better investment in terms of long term growth.

I'm afraid if you don't get a handle on it or let them go with a referral it could be detrimental to your business and could quite possibly lead to negative google reviews.