Quote from @Robin Simon: Its definitely dependent on a lot of variables, personal situation/risk tolerance, etc.But high-level, I would say that there can certainly be a balance - sometimes people forget that when using hard money or any sort of financing, for some reason you need to "MAX out leverage" - i.e. do a 100% financing for a flip or a max cash-out refinance etc..However, most hard money lenders would be totally willing to do a lower leverage loan (and would probably prefer it) such as 50% or 60% LTC instead of the usual max amount. 

IF the investment didn't make any sort of cash flow, and put me under water by a good amount every month, then I would highly consider selling. 

Very selectively  LOL.   

It was advertised but we were very selective of who we let rent it the first year.

Pick your battles selectively as you do not want them to make your life difficult.  

3Rd time posting it because 3 different forum categories.I already have an attorney and have spoken with a couple others, as well as mortgage companies.my time is valuable to me, unless you have some sort of experience with anything related don't leave a comment.

There was some sort of State rental assistance, I think, for unwed pregnant mothers.

I recommend you read some books about how to manage properties well, use a strong contract, know that contract inside/out, know your state law inside/out, build policies and procedures to catch and stop problems quickly, know how to screen and select good applicants, etc.An ounce of prevention is worth a pound of cure.

@Mark Albini Google some of the California projects I'm always seeing on the local news here, you'll see how elaborate they can be, The only ones I'm seeing get done with zoning changes are the ones that have some sort of Non-profit or charitable component.

Having that sort of liquid money will attract a lot of attention here:)  so maybe go slow but steady and meet in real life , do vetting etc of your PM .. you know what I mean