Is this a common practice or should I run like crazy.

That makes sense, but how would that affect your refinancing options?

No I was not a gambler in the strict sense, I never lost a dime in the slot machines there.

My thoughts are that aside from gated communities, pocket neighborhoods and shared housing foster a sense of community and increase safety of neighborhooods. 

If you don't need the cash then maybe it doesn't make sense to refi but for me it was the way to go.- will

A few more deets: I live in the San Antonio, Tx area and would like to invest locally I would also like to use as little of my own cash as possible IF IT MAKES THE MOST SENSE I've worked in construction all my life and I know how/what to do to get things done.

Look at the deal - it either makes financial sense - or it doesn't! 

Sure, you can classify yourself as a real estate professional or setup a property management component and pay yourself a salary that could convert that passive income to earned income, but it generally does not make sound financial sense to do so.The gig work could potentially support a Solo 401k.  

I'd like to self-manage the first rental as a learning experience but would eventually plan to transition to a management company, so the numbers have to make sense to cover this expense.  

As far as investments, basically anywhere that makes sense.The market is definitely hot, and therefore difficult to purchase something that makes sense.