It's done all the time in the institutional world.In your case, you have in-place debt that you are not looking to pay off, so the biggest concern here is lender consent for the recap.  

One of the concerns I had when looking at out of state investing in areas with potential for higher vacancies is the associated cost of getting the unit turned over.

I would only be concerned about his debt if he were missing payments.

This is a big security concern for small children.Do your bathrooms have showers or tubs?

However, it is concerning that just over one month from the courthouse date here it is listed on auction.com. 

Here's how my priorities lie:1) positive cash flow2) pull out as much invested capital upon refinance3) long term appreciationI'm an out of town investor deciding between a couple different cities and San Antonio is the front runner right now; However, I read a post about another out of town investor having a hard time finding a contractor that would quote him a fair price which is a major concern for me.

Well, in theory it might work, but I'd be concerned how you would enforce it.

My main concern was am I entering the acquisition loan details correctly?

I have a lot of gutted rehabs in my areas but I’m concerned it’s too advanced for just starting out

is there anything else concerning you?