With this being your first property it could be a big bite to take.

I want to partner with you.

Do you eat your crow with ketchup or with Sriracha?

@Xuming Yu, I'm usually the one who is more accommodating of tenants, but not in this case.

Expanding to nearby areas with lower costs and strong rental demand can also make sense.

Sometimes the deal is not great for their numbers, and they would still be able to wholesale the deal instead of trashing it, and get some money for more income.  

With the idea of "we can turn money today into more money tomorrow by investing it," I place most of this within a taxable brokerage account where it grows based on the market broadly speaking.

Always plan for more than one way to win.

Most lenders that I work with cap the LTV % on cash outs at 70%, so assuming $165k is accurate, the max loan I would see on this would be around $115k, which doesn't give you any cash. 

As I get this information 2nd hand, I'll just say, it hasn't went well.