bad bet from 2005

[Paul Kogan]

Hi all,
during my first years of investing (about 5 years ago) I made a few successfull deals by playing the market. Unfortunately, I made some bad bets too and now I'm stuck with these 2 scenarios. Please help.
Scenario 1. Single Family -
purchase price $105, remaining mortgage balance $90K, I rent it out for $875 per month. I have about $100 remaining each month, but according to the 50% rule I'm in the negatives. I have some cash about $110K that I made on other deals. It may sound crazy during the credit crunch time, but I was wondering if it would make sense to pay the mtgt off and collect $875 per month, which will give me more than 10% return on the $90K investment plus it'll save me a lot of money in the long run.
What do you think?

Scenario 2 - 2 bedroom condo.
Purchase price $185, mtgt balance $145K, maint. $2000 yearly, rent $850. This is the worst investment I have ever made!:( I was hoping to sell it at the peak, but the market dropped way too quickly and now I'm stuck with it. Is there anything I can do with this property? It seems like to only logical thing to do right now would be to hold and wait until the market recovers. Any other ideas?

Thanks in advance,
Paul.