“You can’t eat your house”If you believe as many people do the market is at a high, that $20k in equity disappears fast, and could lead to a situation where you’re underwater and negatively cash flowing.

In time your expenses will increase considerably on individual doors and eat up your cash flow.I would be looking to sell now while the SFH market is still high.

Or should we just eat the fee and go separate ways?

Being broke is a symptom of eating and drinking out, the latest gadgets, fancy cars and skinny jeans.

About to eat dinner!!

Nobody wants to work their butt off to make a little when everyone else at the table is eating the steak.

The capital loss eats your gain, there is no limitation. 

I had more than on contractor borrower of mine that finally figured that out got enough equity from relatives and now they are doing quite well and no way we can compete with them.but you start moving up north of 750k to purchase and unless your in the Bay area or prime LA  that does knock out a lot of competitionand you also have to remember this poster is paying CASH  HUGE difference as she has no cost of capital most of us need to borrow and if your borrowing HM which 95% have to as banks really don't service this niche ... her carrying cost ona say 700k project would eat up 20 to 30k EASY.. 

But as soon as you start to consider capex on a 10 or 20 year scale you will find that it will more than eat up the cash flow.

The domino effect will eat your equity as well as life savings.Unload the properties while you think it is the peak price.