I also think you can get 6.5% interest these days so that should be closer 30k a year for P&I.I just don't see how you can lose money like that if your gross rents are 100k on a 500k purchase price and you're putting down 20%. 

Now I always give the disclosure that I'm not an exact expert and can only give you my limited knowledge and experience. 1st/2nd Question:I've never had a Housing Authority close up or lose financing.

Yes, we will be able to live in our own house and not throw away our money in rent, but we will lose all the cash flow because we will need it to cover the primary residence mortgage. 

As your equity grows, your cost grows to a point where you are losing money with its growth. 

If they don't pay or violate the lease in any way, they can lose their vouchers. 

He said abusive Section 8 tennents can be reported and can even lose their Section 8 eligibility. 

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

Do not be surprised if you lose your entire investment and maybe more, if you have a recourse loan.On the other hand, real estate is a forgiving asset class.  

It depends on if you want to make money or lose it. 

I am very aware of the fact that it is overall a losing game, but I have to work on my psychology on this.