The first property will cost:$400,000 x 25% = $100,000Due to rapid appreciation, you can use cash out refinance to pay for additional properties.

Hi.I have a tenant that she hasn't pay the rent for JULY yet.

I talked to a mortgage loan officer and they say my best option is to cash out refinance, in order to pay back my family member.

I live in CA, and am paying a local property management company to manage tenants and repairs.

I don't want to pay the full price and you shouldn't either!

If that is the case, then you will be paying on the capital gains taxes of the sale.  

Are they paying market rate?

If you know the market and where to price your property, a listing agent is really not going to add a lot to the process and will cost you 3%,  Now before I get blasted by agents posting how mush they add to the sale on the listing side, I will say that if you are not familiar with the sales process, maybe you need to pay the 3%. 

He told me that he always gets the seller to pay though. 

if it is just the financial side holding you back - let your bank be your partner… or see if you can borrow the money from a family member who knows and trusts you -  without actually partnering with them on the control of the deal itself (pay them interest - or even bring in on the lien to secure their position the first time) - but let them be the finances and you control the project.