Does anyone think I should keep them or am I being too hasty to get rid of them especially since they are making a good profit.It's all up to what makes you comfortable at the end of the day.Life is too short to worry about things -- you only have so many days on this earth to be happy, might as well make the best of them.If you like the profit but hate the problems, then it's just all about eliminating or reducing the problems.

BUT, FHA will underwrite about 75% of the rental income of the non-owner-occupied units on a 4plex when they are calculating your Debt to Income.

your own availability to get hard money or traditional financing.I am sorry I am not sure what you mean by DOI either I am thinking it is some variation of debt to income.

I read an article recently that quoted Mark Cuban regarding the best investment advice he ever received and he said "Freedom from debt is worth more than any amount you can earn."

This happens all the time, is not unethical or criminal, and you should not file a complaint.Here's the mentality of the other side of the transaction:1) Man, it sucks that I need to short sell my home, especially now that debt forgiveness is no longer protected in 2014 due to expired legislation.2) I had better market it properly to make sure the short sale is approved.3) I had better vet the buyer properly to make sure they close the deal.4) I would prefer a cash offer to a financed offer.5) Cash offer from someone I know is accepted.That's it.

The IRR is an annual return which is comprised of the annual cash flows (9-10% per year) plus two equity components, debt pay-down and appreciation.

Up until that point, then lender simply has a lien on the property - and the borrower may do whatever he deems fit with the property.Once the gavel goes down - assuming 91 days + 6 months in our example, then the Bank gets what is called a Trustee's Deed or Master Commissioner's Deed - which wipes out all debt - 2nds, 3rds, etc.At that point, you are dealing with an REO (Real Estate Owned) or sometimes called OREO (Other Real Estate Owned) - and when you call the bank, you want the Special Assets Dept. - not Loss Mitigation.

Assuming the house is upside down, usually the owner isn't trying to keep the house/reaffirm the debt in a chapter 13.

Due on Sale Clause, where the loan can be called fully due and payable, is one of the pitfalls, and the DOS issue can be mitigated but not eliminated.

http://www.irs.gov/irm/part7/irm_07-027-008.html Deductions Under IRC 514(a)(2), the deductions allowed with respect to each debt-financed property are determined by applying the debt/basis percentage to the sum of the deductions allowable.