For example:- Buy a 4-plex for $100,000- Invest $10,000 per unit ($40,000 total) to turn it around- Raise rents and/or re-rent units, get full occupied, season for minimum time needed by refi lender- New appraisal at $180,000- Refinance at 80%, or $144,000.

You could easily raise the equity for portfolios with a 25 yr am bank loan.

I currently have ~200k equity, and whenever I raise that, just as you say, I get hit with the "that's waisted opportunity money," but I've always treated the equity like my 401k, i.e. not something I withdraw from.

The goal is to use real estate to get out of debt, which is $175,746, and to free up cash for future investing and raise the credit scores!

I might be a little biased about Dallas, since I was born and raised there and still live in Dallas County but we usually do not suffer like the rest of the country does when a recession or depression hit.  

Well in our area Milk farmers are still in non Hispanic areas by and large. over on the Oregon coast.I lived in the Napa valley for a decade and was raised in SF bay area.. no Hispanic labor and you can forget about growing grapes...

I know that could kick them out and raise the rent to 750/700 while just doing minimal clean up and do very well for cash flow and cash on cash which is all I care about. 

I was trying to tell him to raise the rent and such, but apparently he just didn't get a very good deal on them, he feels weighed down by them for some reason, even though I told him to hold onto them.However would this be an opportunity for me somehow?

Remember the worst tenants are usually the best con-artists.Stick to your criteria, if you have plenty of applicants raise the bar in the areas where you can in choosing the "best" fit and never lower standards to try to make a otherwise unacceptable applicant fit. 

For tenant 3, is it a good idea to raise his rent as soon as we take ownership?