Verify and double verify with the applicant that the information they have provided is correct and that all income is verified and all adults will have a background check. 

I too live in Marin, and feel it is a solid long term market for apprecaition, and utilizing the power of principle reduction.When it comes to refinancing, figure out what the loan costs will be, then divide that buy the monthly savings with the new loan in order to determine how long you have to maintain that loan to break even. 

The "correct" way I'm assuming you're referring to.

Yes, you do.Here is how to think about it correctly. 

Andrew is correct that you can get a multi family property w/ 3.5% down FHA.

@Russell Brazil is correct about time in the market. 

If I do a cash-out refi, it will change my interest rate, correct?    

To thrive in real estate investing, you must maintain a firm grip on your finances.

You are absolutely correct - I have never done this exercise. 

The answer is it depends - if there is no more settlement then they are correct you probably do not need piers at this time, if it continues to move then you need to do something.