I really want to specialize and focus on investment properties with positive cash flow potential.

@Matthew DrouinThat is a great position to be in.Now with regards to the refinancing options and how much you should take out, I'd say it depends on what your plans are.If you are planning on holding onto to that rental for the foreseeable future, you should stress test that property to figure out how much minimum income it needs to generate each month to meet your mortgage payments.That monthly would dictate how much you can conservatively take out after refinancing (and providing that you lender is OK with that too) without exposing yourself.Now if you have other deals that you want to pursue and you need as much cash as you can lay your hands on, you should take out as much as your lender would allow you to.Personally, I'd go for the option 1, especially if you have the  ambition is build a sound rental portfolio.

He will be in a difficult position if you fire him and he knows it.

There was a time when "all electric" was promoted as a positive thing, but if natural gas is available its usually cheaper.  

I guess the same benefits would exist for those selling a home.I've heard rumblings about Zestimate being relied on so much that it can have a negative impact on actual home values. 

However, since we each answer phones, book our calendars, and perform the work, it is really an all or nothing type position.

My rough guess, but if you can rent it for $1,000, I have a feeling you will cash-flow positive.

I have a few questions regarding the foreclosure process.When you purchase a 2nd position at the foreclosure auction, I understand that you still need to pay the first position off afterward.

I️ like positive cash flow after ALL expenses.

I just finished my first massive "house hack" where I converted a 500 Sq.Ft property on a corner lot into a positive cash flow triplex, and I'm looking to repeat my success.