Those situations go bad more often than not, costing you money and the friendship.

Hi @Elias Halvorson,Both markets offer lower costs of entry and opportunities for cash flow.

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

In other words, you will incur the cost of demolition just to get the raw land.  

In reality it is costing you more. 

This puts the home underwater.I've calculated the following two options: To sell the house, it would cost me about $60,000out of pocket.

You have to have exit values of single family homes high enough where build cost can work.

If any damage arises from her negligence she will be getting the bills for damages, plus costs of collecting which you bill as well as your attorney in addition to the termination of her lease.

Others may argue that higher rates are bad as it drives up their borrowing costs. 

I was a student they offered to sponsor a deal for and it has cost me everything, literally.