Those that brought few years back can refi and pull cash out and buy again, and use the excess cash flow they have to feed the new acquisition.

Based on what you are saying, the current owner has excess costs and a poor growth strategy. 

When I am required to show proof of funds I have my bank write a letter stating that I have in excess of the contract amount on deposit and available for withdrawal.

it was to build up my cash reserves and look for invvestmetn opportunities;  also use teh excess flow from my other properties to pay down the mortgage on my 2nd rental; witht he goal of getting it paid off by the time i retire in 2015.    

He mentioned that a 3BR voucher allows for more people in the apartment which contributes to excessive wear and tear.

That's an excessive amount of prattle out of me. 

We've been excessively spoiled by 2-3% rates.

Where does the excess money go after everyone (bank, agents, brokers, seller, etc...) has been paid?

NC Nuisance Laws Examplesof nuisances:interfering with the comfort, convenience, or health of an occupant are foul odors, noxious gases, smoke, dust, loud noises, excessive light, or high temperatures.A private nuisance involves a particular injury to a specific individual landowner.In this case, the suit against the wrongdoer may be brought by the affected individual.

So it's conceivable that you could find a place perfect for you that is less than the property you are selling.I'd then balance my debt so I take more on the primary and use excess cash to pay down or off the new rental.