I see that I wasn't clear in my description of our current situation and our goals. 

And now with rates being high, plus many areas overbuilt with new apartment buildings, I’d be careful with unknown areas, and also what you read in the media about “hot” areas, up and comers, etc.I was in a similar situation to yours a couple years ago.

It might be a situation where you are digging a manageable hole that you can work and earn your way out of, but be honest with yourself.

But it's early yet and we await Marco Response for more clarity on the situation.

Even if you don't have rent caps, it is better to do smaller increases each year before you find yourself in a situation where you are far behind and need to catch up. 

In the latter situation (where I am paid monthly), as a short term lender, I only do 12 month Promissory Notes.

Dealing with people is messy, its not uncommon to have difficult situations and conflicts to deal with. 9.

These situations don't get better, they always get worse. 

Seems like a messy situation. 

With $135K in equity and options like flipping or investing out of state, you’ve got the foundation to make some big moves.A close friend of mine had a similar situation recently.