Higher entry prices in higher end neighborhoods yield the same monthly rental income (and less cash flow) as homes 1/2, 1/3 or even less of the purchase price, but you get into trendier neighborhoods, generally less crime, better schools, stable or higher appreciation, etc.

I would only do this if your jobs are very stable and you are not overextending yourself with payments.  

pay the first off and you own it free and clear.. rehab or get it stable sell it. or keep as rental.. that's what your options are. or do nothing and let the first foreclose if it bids up past what the first is owed you would be entitled to whats called overages as your the second..  

Hopefully building a portfolio of a few rentals will make for a better and more stable retirement.

My investments currently, (After having been burned in C/D/F areas) are all in A/B areas, with A/B tenants in stable markets with high demand, and I have 20-25% down on all my properties, and probably 50% equity in most of them at this point.

I would also look for a way to LEGALLY get them out of the rental as soon as possible and get someone qualified, mature, and stable in there.

Especially in snow and rain.I am looking to attract a more stable and better tenants.

Get someone stable and move on.

Frederick is a good stable market.

My properties there have been pretty stable with very little turn over although I would highly suggest doing a thorough tenant selection as with any rental.