I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

Quote from @Xavien Rafael: Year 1: Building the FoundationThis year is all about setting up your structure, building your business credit, and laying the groundwork for funding and scaling.1.Open Your LLC:•File your first LLC and elect to file as an S-Corp (if applicable to your tax situation).

Patience, I believe, may be the best practice to recover principal.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

This should be on file, but not in lease.Tenant interviews should be a part of all due diligence when buying with tenants in place.  

My question is "for anyone with this particular experience" Is it a far fetched idea to do a cash out refi on house "A" to payoff some personal debt and large payment on house "B" to knock down the principal?

We also were able to get the property taxes reduced by filing a complaint with the county.

In the meantime I will continue the search for a new PMC and talk to our lawyer with the intent of filing a suit since odds are it will be needed. 

I'm interested in everyone's opinions on using a HELOC to purchase turn-key rentals for the short term and covering principal paydown across all new mortgages / loans ( HELOC ) through excess income. 

Balance Sheet can show how much was a building was purchases for, how much principal loan is still outstanding, how much is in escrow and how much is in tenant security liability, Construction typically in the long-term development are put in the balance sheet and not P&L.Most investors are doing multiple type of real estate, not just rental.