It burned to the ground a week after purchasing.

Quote from @Ven Bud: After hearing to lot of bp episodes on negative cash flow, I have a question.I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence.

Was previously purchased with a Builder to erect a SFR residence on.

Maybe it isn't worth it, but you should consider the numbers and decide...that could push you towards purchasing another rental. - You mentioned paying down/off a rental and needing to consider the tax implication.

They were selling on pro forma, but the market and the debt market have shifted, and it's aa lot harder to achieve higher pricing with lower rents.We've purchased over 2,000 units, and the simple answer to the question is that they are either mom and pops and run their businesses with ZERO KPIs, they do not want to risk losing tenants if they raise rents, and they don't treat their asset as a business.When you take over, it can be difficult to get rents to market if they are very suppressed.

I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month. 

They tend to go after rookie investors and have seen to many in my network that have purchased "bad deals" and are in a bind with NW deals.

Purchase price: $20,000 Cash invested: $45,000 Sale price: $99,000 Contributors: Peter Vekselman Partner Driven and Amanda Frecks teamed up for an exciting flip on Main St, Grainfield, KS.

The property that you sell and then purchase through a 1031 Exchange must be held for rental, investment (capital appreciation), or used in a business. 

Purchase price: $515,000 Cash invested: $960,000 Sale price: $1,850,000 New Construction development, What made you interested in investing in this type of deal?