For a HELOC approach that would be good as you will have a hard time finding any bank to give you more than 80% on a HELOC.On the other hand for your own residence, you can get away with much less downpayment, especially if this is your first home purchase.

I appreciate any suggestions or feedback on the approach I took. 

Once you've decided your policy and given it to the tenants, if they disagree with your approach the other thing is to give the 'happy clause'. 

This first year I have a rental loss approaching the $25k passive activity limit for active participants.

@Lynnette E.I dont know if providing them with a dump fridge when the tennat already contacted a lawyer would be the best approach.

How would I approach this?

Having a healthy reserves in your analysis will help a ton down the road.

In the beginning I felt like it was a pushy salesman approach.

I'll be approaching critical mass as a landlord again after a 15 year absence due to doctor stuff where I had to sell all properties and crush my financials but I'm still topside. 

Unfortunately houses come and go in days still and winter is fast approaching.