I would NOT sell your house and ruin your credit just because housing values have decreased.

We have taken on properties that had poor reviews, but there were underlying problems that resulted in those reviews - rickety furniture, washers and dryers that ruined clothes, things terribly out of date.

On the rare occasion where a tenant can't pay, I treat them with dignity and respect, give them 3 days without late penalties, and and even offer to pay for their storage unit for a month while they transition (approx $50, vs $1000s in lost rent, court fees and damages if you have to go through eviction); 95% of the time they've just had bad luck and appreciate the treatment.More importantly, their neighbors see that I'm not just a stereotypical 1980's movie landlord out to ruin the lives of single moms and their adorable band of misfit children, and believe it or not, this really does affect their decision to move on when I do my annual rent raises.

Long story short, the new management company (this particular company manages around 50,000+ units in the US) ruined the place for me.

I have also had to deal with neighbor issues from afar with the neighbor above flooding and ruining my ceiling two times in 5 years and a potential lawsuit against this neighbor so needless to say this property has brought me little joy.Is it crazy to sell a positive cash flow property in this situation?  

Don't ruin yours with this.

Certainly overleveraging is a bad thing and can ruin your business prospects, but conservative use of leverage to allow you to purchase an extra property or two or three during this recessionary period could allow you to grow your portfolio much more quickly than if you wait another 3 or 4 years to own even two properties.That said, slow and steady is never a bad thing...if you're okay waiting 20 years instead of 10, that's a perfectly fine decision...Congrats on the early start and great plan!

He said that essentially I'm looking for a unicorn tenant-buyerI told him that I'm looking for tenants that have just had one bad event that was out of their control happen and now they're credit is ruined and they're looking for a way to repair it and move on with their lives.

Bad relationships ruin alot in peoples lives.

co star ruined Loopnet.