Ie - that you have the ability to foreclosure to recover your funds and any associated costs.  

This is lost rent that thee is no one to recover from (unless someone thinks I can collect from the government.I would not refer to it as nationalization of our property. 

The State of Arizona has recovered very fast from the Global Pandemic.

You have to watch and make sure the tenants are paying but you will never recover the cost of utilities by raising rent to cover them and then paying them yourselves.

If I just want to recover my initial investment of $81k, can I not do a cash out refi for just that amount?

They have not had a deal go south, they have not lived through a true downturn, they have not had to fire a manager or have a tenant do over $10k in damages on move out, and skip town to not be able to recover (thankfully this last one has not happened to me, has happened to friends).What I have learned, but does not resonate with people as broadly: there is no quick solution.  

When someone is licensed they are insured also, if something does come up that you need to recover you can always work with insurance companies, but individuals can very quickly disappear if something goes wrong and your recourse is almost zero in that scenario. 

Then we sent a final notice that we would be filing a claim in small claims court, attempting to garnish their wages, hiring a collection agency and doing everything we legally could to recover the money to pay for the damages, and they actually promptly paid the entire bill!

The discount applied on a loan is a function of the time and capital it takes to recover from the loan.  

Your profits start after your cost is recovered, so when you pay all cash, you have to recover all of it before you make a profit.