After that is done decide if the amount you don't have in hand is worth filing a small claim.

This is when you decide which side of the line you will be on.  

As @Ben Leybovich suggested, using the funds from the sale to catapult you toward a better credit profile could be beneficial for you in the long run.Best of luck with whatever you decide!

Something else you may want to look into, if you did decide you want to unload some of those SFRs and have a good amount of appreciation on them, is a 1031 Tax Deferred Exchange. 

@Muller Dessie  I'd decide how you plan on managing it, yourself or through a property management company.  

Is there a good rule of thumb you use to decide how much oop to put down?

We were able to get a 80% of rehab value on a 20 yr term at 6%.We decided to wait and do a traditional mortgage since it would return more of our cash and get us a better rate as well as a lower monthly payment.

@Sean Durham We are purchasing a duplex in 29 Palms, curious what firm you decided to go with and how is it going so far?

Then decide who you would invest with.

Scenario #1:Sell SFH, buy 2 properties:property 1: small multi-family unitproperty 2: SFH3 years down the road I decide I want to move into that property #2 the SFH.