For Property 1: Should I sell this property and transfer the equity into another investment, or should I explore ways to lower the monthly payment and break even or slightly positive on cash flow?

A lot of people are losing money or operating at breaking even at the moment.

It comes down to expectations, I think you will defiantly break even.

I'm just looking at the fact that you may be pulling most of your equity out of the existing home and then breaking even on the cash flow or worse. 

Ultimately, I sold the property for about break-even because of personal circumstances that changed in my life.

For context, I'm in my 30s and while I'm healthy, my days of working back-breaking jobs for minimum wage and "exposure" are over.

But you can only get a construction loan once it is permit-ready to break ground, etc. 

The builder put in the thinnest copper piping at the time and as it gets used, it moves and then breaks. 

Real estate is beneficial and has so many pros such as cash flow, tax breaks and  appreciation.

To tackle this situation and get your debt-to-income (DTI) ratio in line before closing, we need to break it down:1.