I'd say you could do the cash out refinance AND utilize at least some form of leverage on the second purchase leaving yourself with the most cash on hand and possibly the ability to do more deals which for better or worse should appear in large quantity in the near future. 

They have the ability to fight your claim and will be much better equipped than a lawyer to understand your claim.

I have calculated the rehab costs and vetted each individual deal to the best of my ability.

The ability to ask for an advance of up to $10k which must be paid to you in 3 days from application, regardless of approval.

Your ability to underwrite and manage contractors will play a huge role in success or failure.

I've spoken to two accountants that don't believe there will be any adverse effects but my concern is that lenders will look upon the forbearance as a negative in my ability to borrow in the future.

Also there are guidelines regarding the ability to count rents from a home that you are leaving, so discuss these with your lender as well.  

So I heard this idea on the BP Podcast -- But are there any ethical considerations when offering tenants the ability to get out of lease, if they buy a property through you?

If a Landlord can't survive this current situation, they're probably due to fail in any economic downturn.Please condsider that this is about much more than someones ability to have reserves.

I know you have a property here locally and personally I LOVE Portsmouth for it's cash flow ability and have an 8 unit there myself, but Portsmouth even though close, is drastically different from the Chesapeake market and certainly in the eyes of the renter!