I've been lurking on the site for some time, but this is my official first post.I own a SFH in the Phoenix area, was my old primary home, and decided to keep it because I knew it would finally make me stop sitting on the sidelines about owning rental property.I am looking for some advice on the direction I should go regarding my current rental and the next rental properties that I purchase.My current rental is cash flow negative and also currently underwater.

There's so much money sitting on the sidelines these days waiting for a good investment.

Interesting, but we will go and blow money that we don't have on things we don't need and then complain about the economy and everything therein.ONLY IN AMERICA.For all of the sideline players that say they are ready then the time is right for you.

So if I have a lot of money sitting on the sidelines I'd build, but if not I would take the smaller profit now to keep that momentum that you talked about in your other posts going.

Be patient and sit on the sidelines for a while?

Still have both Cash and a lot of Equity on the sidelines.

Always be looking for a home, sitting on the sidelines while the market 'calms down' would of lead to me missing this deal2.

In fact you're more than likely better off to have as little equity as possible so whatever money would be held in equity could be held as cash on the sidelines to be able to meet the ongoing obligations of the property. 2. 10 cents cash for every dollar of debt.

Waiting on the sideline only hurts you.

rob, sf and your situation says to me big money, high stakes, lots of regulations, and very lawyered up town, both for private parties and legal aid....so I would look into talking to a lawyer who does landlord tenant law, majority on the landlord side  (and try for someone that does mostly that area not as a sideline as a generalist ) and in that direct vicinity...