DSCR will not allow for owner-occupancy, and also will require much larger down payments.

You presumably wouldn't allow that happen if you still had equity in the deal.But, if you did lose the property to foreclosure, it would be auctioned off.

Understand how they slipped through the cracks - did you allow them to book even if you got a bad feeling, priced too low, last minute booking, etc? 

Just as a reminder, I am not a lawyer and this is just my opinion as an individual investor.  

Let’s take a deeper dive.Bonus DepreciationDepreciation allows you to deduct the cost of an asset over its useful life.

if so, take a refi that gives you 20-25% of the new purchase down payment. this will allow you to keep the cash flow high on the existing and have those funds as down payment to get a loan on the new. 

We could start with a queen bed or a day bed/trundle which would allow more usable space for other use. 

Your capital won't allow you to build either.

Unless you can split off the SFR and sell it individually, it is significantly devalued by being coupled with the four plex.

@Brandon Chung unless you stumble into a fantastic purchase opportunity, your best option would be to use an FHA 203(k) loan to purchase a 2-4 unit fixer upper.The 203(k) loan allows you to include repair funds in the purchase loan amount.Once you are all done with rehab and leasing out the units, you can refinance into a conforming FNMA type loan (can usually only have 1 FHA loan) and repeat.