Also Mike, why is cash out higher with refi, do you mean just with the credit union scenario? 

I’ve just heard horror stories from landlords and I’m looking for suggestions on how to best vet tenants - Good credit, no missed rental payments in last 5 years, etc.

Was it included as a credit/debit on the HUD so it should have reduced your cash to close? 

There are many ways to attempt to collect your loss:  file a small claims complaint against them; get a judgement so you can garnish future wages/bank accounts - and the judgement will be recorded in the credit bureau. 

I have an apt where the lowest t-stat temp is 55 degrees.

I consulted with a real estate lawyer a few times this year who said it's very hard to sue for negligence and they advised against taking legal action, especially since the property manager at least followed through on the eviction and repairs.I've now asked the property management company to apply a $4k credit for all the challenges I've had working with them.

referral=UZXgWmHappy to help review settings or share unused property assessment credits if needed!

On top of that there was an $8,000 tax credit, as an incentive since people weren’t buying.  

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

I looked around and found lenders that will do a day out of foreclosure up to 50%LTV down to a 500 credit score but the loan amount minimum must be 300k.