I'm new to this venture and don't have much experience with evaluating the property and will appreciate if you guys can take a look and suggest if I should consider this or move on.

As a property manager for a few years now I can say that:1) it's incredibly rewarding and one of the best feelings is to take a problem property with problem tenants and turn them around and make them into a profitable venture (I've been doing that for a decade with foreclosures so it's much the same to do it for investors).2) I have fired clients over the years...when my office is disrupted and angry emails and calls are coming in OR when I have come to the conclusion that an owner doesn't feel we are worth the value (and in turn we don't feel they are worth the effort to calm down and constantly smooth feathers) then we respectfully part ways. 

If you refi, you’ll get $23K or $35K back (taking out closing costs), but you’re losing your cash flow to interest and closing costs.

I would hate to lose money filing and the tenant decides they’ll pay when they want.

What happens if you buy another property like that.. now you are in the hole $1000 a month.Sure your net worth would be higher in the end, but what happens if you lose your job, get injured sick etc... you now likely lose that property.  

You do not appear to want to take any risks in losing this tennat making the 3rd dog a fait du complies.I would only point out that there is something wrong with the info you have received from your tenant.

You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

Today will be my first day taking a leap into something that can be great, i'm looking for rental properties condos, etc. what should be my first step or route to take, as well as just reading up on how to start a real estate venture?

This tenant could lose a contract and decide to break their lease.