It is easy to find yourself in a position where the cost of clearing the property is greater than the land itself. 2.

A good strategy is to use the LOC to make an all cash purchase, that way you increase your bargaining position, then once the property is yours, get a lower interest 30 fixed loan on it, & repay most of your LOC.

You have a good chance of breaking even or having positive Cash Flow.

At 42, you have a comfortable timeline of 15-20 years to take advantage of significant capital appreciation right here in the Southern California Market while maintaining positive cash flow as you build your portfolio.You may want to reference the blog on my profile page that details a first hand account of getting started in multi-family and where that can lead. 

I'm not positive how much an investor would be willing to pay in Woodbury, NJ for a rental (and should probably hammer this down more), but I found the house to be just break even (after 5k in taxes, vacancy, repairs , etc.) at a $60,000 purchase price and assumed $1,100 for rent. 

The building is very well maintained and needs only some cosmetic upgrades.

In your position the obvious decision would be to sell it as is and avoid the issues that will come with a property of this type.

But as a foreigner, I can only get a loan option of 40% downpayment, 5% interest rate in 15 years, with which I can hardly find positive cash flow rental properties in Denver.

Working for money is fine but in your current position investments should take a back seat until the credit card debt is paid off in my opinion.

Ted, there are tons of people in the exact same position with you.