Do a unit turn and then re-rent it.

If your operating costs are below the market, your NOI will likely be matched closer to the appraisal's market rents.

Rents have been consistently rising as well.

If I am going to hold and rent, 3 beds in our market get about $300 more per unit, and are desirable in there aren't enough of them.If you're gonna hold and refi, I would make it a 3 bed.I may be just looking at it from a multifamily perspective.Let me know what you end up doing.

Real estate continues to be high where I am located and when I calculate the mortgage payment with 20% - 25% down, it only breaks even with the rent I could collect. 

Plus with larger properties, a few families can split/share the cost to rent.

I own real estate outside of CA, both in the country and internationally but have chosen to rent in Hermosa Beach due to the high cost to buy a home in coastal southern California.The apartment complex I live in was bought April 1st by an private equity company who gave all the residents a 60 day notice to vacate so they could due a total rehab.   

I am looking at purchasing a property to live in for a year and then rent.

Not saying all tenants are bad, as most of us just want to make our rent payment on time and live our lives - but don't be surprised if you run into more headaches vs. spending a bit more money up front for peace of mind later on with placing better tenants. 

The fact is that you have a list of requirements for renting from you, that you present to each applicant and marriage status is not on that list, supports your argument.