Afterwords, you need to pay taxes and left with barely anything.

@Kate Johnson, if you still owe almost $200k on a home that (after 7 years) will barely sell for $300k, has it really appreciated much?

The floors were extremely unleveled and the new flooring was already coming apart, in one unit a previous landlord spray textured over every surface of the property including the thermostat/door knobs/trim, in both units the kitchen and bathrooms were falling apart and barely above usable condition, the staircase in one unit was obviously illegal it was so steep, and the walls/ceilings in both units were a mixture of poorly cobbled together panels, cracked lathe & plaster, suspended ceilings that should have been replaced a decade ago, and entire surfaces made from something I couldn't determine.  

I am part owner at CT Property Management LLC and what I can tell you is that some months we are simply an "insurance policy" for our investors (meaning barely any issues to take care of, but are there to take care of whatever comes up) while other months we are worth our weight in gold (things break, tenants need things, some sort of maintenance needs to be scheduled / etc.). 

Rents each month are $1,900 with almost no vacancy (HUGE rental demand here), and basically breaks even on net cash flow after taxes and all expenses.For a living I am self-employed but haven't been making any money for a couple of years, and am just barely making enough to stay afloat with my living costs, with no extra money saved up for more real estate investment, and no such investment money to be seen anywhere in the near future either.So my question to you is, do I have any options with what I have to do any more kind of investing, such as maybe somehow refinancing and taking equity out of my income property?

It's unhealthy, not rewarding, unsteady, and the expenses make it barely profitable) he's trying to find some magic path to high reward, low risk. 

It appraised for $76k so we're barely under the 20% so we wouldn't get much of a loan at this point.  

Furnished as a mid-term rental would be around $2400-2800/month based on comps, again with range based on finish quality.I am thinking it may be better to analyze as a flip rather than rental since long-term rents in the area are lagging valuation because it's a neighborhood that is just barely beginning to see any redevelopment (even though builders have listings on nearby vacant lots offering new build $1M+ homes based on their speculation of future development). 

Thanks @Sean MyersUnderwriting that Sacramento deal simulating a cap rate increase to 6.5% brings me to an IRR barely above 0%, so I guess it's good that I don't go underwater :-)Of course, that is true until it's just the cap rate to suffer and not the actual rents with vacancy and discounts, otherwise the debt service might become hard to cover...Thanks for sharing your wisdom!

I encourage sellers to use them as a selling feature to gain a competitive edge.I negotiated one to be included for a buyer client who could just barely afford the home we got them into.