Specifically, what research results told you these were two good cities to invest in?  I

With the purchase, the rehab, the closing costs and the holding costs (hard money, taxes, insurance, utilities) our all in is around $200,000, but we have created $40,000 in equity.

I won’t sugar coat it when I first got in I didn’t realize the over head cost to run a business .

In one of my markets I invest in I could buy a house cash for $200,000.

It's reassuring to hear it's not a rare nightmare scenario I'm in. I

You may have to search a bit for the right contractor or engineer - sometimes I see one solution dominating in an area - "that is how we always do it"  Thanks for the input - yes, it sounds like the specific area this house is in is particularly bad for foundation issues.  

The only reason I chimed in is a lot of folks might take this as gospel for any and all areas.

We are really clueless, but at least we jumped in.  I

I own a single family home in Socal that my wife and i currently living in. I

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...