This then creates the opportunity to access that cash flow (converted into principle) via tax free refinances! 

You need to not necessarily follow a book to a T, but just basic principles.

I have witnessed many funds that started on sound principles compromise those principles when they couldn’t generate sufficient deal flow to be able to invest the capital that suddenly came into their lap. 

Many people on principle alone may not want solar panels as hard as that may be to understand.

You might not get as much cash flow with that equity as you would get if you sold and put it into say an apartment building, but with the low mortgage rate you are likely getting some pretty good principle paydown each month and it's in an area that will see good appreciation/rent growth long term. 

(It could be rented for more, maybe $3000/mo, but I'm only comfortable charging so much on principle.

Here’s how I’d approach it based on my experience and Cardone’s principles: 1.

Most of what I write from here applies to this type of property because that's what is customarily purchased by new investors who prioritize cash flow and should not be construed as general principles of real estate. 

I would say the same principle applies in the smaller world as well.

The income (rent minus management) should cover the costs (principle, interest, taxes, and insurance) depending on the property's price point.