This is reckless. 

I was a long-time banker before we started this company, so what I see the Fed doing now is not only stupid, but it's reckless.

She said that she lost me at the refinance stage, and that pulling out all of the equity to just go buy another property creates a crushing debt service and is not sustainable and reckless. 

In the first scenario, you make a gross profit but it will most likely disappear when you consider the wear and tear and the replacement costs associated with that aggressive and reckless approach.

Don't be lulled into a false sense of safety and make bad or reckless decisions knowing that you will NEVER have to lower rents.  

Several things in your post tell me you are not reckless, such as having good credit.

It ended up still being a great deal, but it was kind of a reckless purchase. 

I try to plan things out before I jump in and make a promise, I don't want to look like a reckless wanna be without having a strategy.

Somehow spending the money on a house is reckless????

I'm concerned that they may be damaging the property, if not intentionally, just recklessly not caring.