Correcting my own mistake

[Wesley Clark]

Hello BP!

I fell into land lording a few years ago when I moved out of a duplex I purchased due to job relocation.  I now own a duplex out of state and have recently purchased my primary residence.

Basically I purchased a duplex with little to no money down with a VA loan. I purchased it in 2008 for $154k, it is now valued at around $135K which is roughly the exact amount remaining on the principal. The rents total $1,500 a month with an escrowed mortgage of $1,350. However - due to my inexperience I have been paying the water for the tenants and have not raised the rents in several years. Additionally I have been relying on family to do the property management which I would ideally like to avoid. Essentially the property is cash flowing negative as property management, water and capital fund are only covered by $150/month.

Due to my now feverish appetite to get into buy and hold properties (thank you BP podcasts and books) I would like to get my act together and be a move active landlord.

Last year i purchased my primary home for $290k and have a conventional loan with capital invested in the down payment.

So that being said I see a few different options and was hoping for some advice. 

1.  Start charging the tenants for water

2.  Raise the rents incrementally annually 

3. Refinance my VA loan to restart the amortization schedule and reduce my monthly payment. I would think this would at least make the property neutral or start to cash flow. With incremental rents it could eventually work...

4. Sell the rental home to free up my VA loan - and refinance out of the traditional loan on my primary residence into a VA loan. I'm not sure if this is a viable option and if so - if i were able to pull out any of my capital.

REALLY appreciate anyone's assistance and I want to get going in the right direction on multifamily deals that positively cash flow.

-Wes