I have personally owned over 200 cash flow rentals and sold them as it simply was not worth it..

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

Just try to sell it to someone else for anything so you don't lose all of your money.

I know Walter personally.. he knows a lot about real estate from many angels..

I find it's very personal, and dependent a lot on your goals, resources, risk tolerance, location, experience, etc.

We actually just had several go in on Livingston ave on the west side where I'd not normally think would be desirable, but they look great and really brought the block up.So I'm a huge fan personally from seeing them go up in my own area.  

Most people do not want to lend out money at 5% or 6%.

If you don't have to own your own residence though, why not invest the money in a profitable investment elsewhere and rent in Japan?

I was mislead and should seek mediation to recover some or all of the earnest/hand/deposit money?

If you cash out equity in a property, you are "borrowing" that money from the lender.