Bought it for $179k owe $171k and it appraised 3 weeks ago for $193,500, but if we add a closet to make a 4th bedroom the REA said it could have potential to sell just above $200k.Should I take the equity and pay down debt and keep the house and save the extra money after paying down some debt until I have enough for a down payment for an investment property?

The person representing the banks bought all but 2 of the about 10 properties on the list.  

In this are the market rent and the section 8 rent aren't so different, however, I have found there is a small niche of value:if you have a 3/1 or 3/1.5 as S8 they will pay $700-750 if you have a 3/2 you can get 800if you have a 4/2 you can get up to 950so for a few houses we have bought them as 3/2 and converted them to 4/2 (obviously when possible) and it gets us a much higher rent than the property would normally warrant.

I’ve bought several 50k type properties and will be buying many more.

@Steven Lebischak, it would be nice to think that your $1400/m tenants would just be happy to pay you more than they'd be paying if they bought a place themselves, forever, but, you should allow around 1 months vacancy each year (rather than the 3% vacancy allowance I see on many of the pro forma "Calc Review Reports").

The more things it touches, the more you can control.Equity, bought by the investor, is dead money...mainly, because it stops moving. 

I'm on the hunt for my next flip, not impressed with MLS right now.I'm currently on Joel Cecil's list with fastandeasyhomebuying.com - Someone I work with bought a home through him and it went great!

For example: If you bought a property with 25% down 5 years ago by paying the mortgage and with some modest appreciation you might have 30-35% equity in the property.

The amount people are willing to pay for junk I bought just a year or two ago is shocking.I paid $6m for a property I bought just over a year ago and got an LOI for $9m. 

I just bought a duplex in Lake Worth from a homeowner who was going through the exact same thing.