If you have enough personal saving or cash flow, you do not have to leave reserve in there.From tax / legal perspective, there is no pericing when you take that money out. 

Another concern would be what are you doing if it sells over 200,000?

You’re leaving out a lot of other costs.

I will leave it at that. 

I prefer to do month to month leases, so I would have told them to give me proper notice (30 days before the rent is due, per lease and CO law) and they could leave with no problem. 

If they are former tenants, then I want their credit scores and proof of previous payment or they are going to be leaving.

Several Landlords Groups including Landlords Inc. and Landlords of Eastern Jackson County plus several concerned Landlords and Realtors as well as the Apartment Association have been working to get the details and mount a campaign against the ordinance.To view the ordinance Click HereTo view our set of Talking Points and FAQ’s Click HereWe need your help:Landlords Inc published an article in their newsletter as well as voter registration forms that you can access through this link here.Landlords Inc will be accepting contributions to help pay for the campaign to defeat the rental inspection initiative.If you live in KCMO: You must make sure that you are registered to vote by July 11th, 2018.

That'd leave you plenty to do a cash out refi later and get the next property. 

Her credit score was alright but she a few past credit issues which were explained to me but were still concerning.

If your CPA does endorse an S-corp, make sure to ask him about changing your business practices to comply with S-corp rules.When doing distributions, remember to leave enough money in the company account for future expenses, including paying the CPA.If you're planning to dissolve the company, I recommend prepaying the CPA before dissolving.