We have tried everything to settle this in a friendly manner, however in the fall the tenant communicated verbal threats numerous times.

It’s the idea to “suffer” a little now to get better reward later.

Hey Christopher, Making that first leap can be daunting,  I found the best way to minimize *some* of the mistakes is to analyze numerous properties before you pull the trigger. 

I have successfully completed cash out refinances here numerous times.

While I still own it, the market it competes in has become insanely competitive so the risk reward profile to me just doesn't justify any new money.

Financial reward.

We've invested a lot into our kids now it's time for momma and poppa to reap the rewards while we're still walking upright....LOL

TBH I'm already seeing homes listed at 275K go for 300K plus and new constructions going over 310-320K...assuming you are from Bay Area ...so think of North Austin (RR, Leander, pflugerville) as your typical South Bay areas and SE Austin areas (DV, Manor, Elgin) as the next upcoming Fremont/Dublin..I feel several parts of SE Austin are diamonds in the dust now...risky play but high reward if you can hold for 10 years and a good tenant in place..

I realized that I don’t know much about the risks vs rewards.

I'm a little outside of Sacramento, but my neighbor's house was just recently listed and it went in 3 days, also had numerous offers, and they ended up accepting one for $50k over asking.