It is not good business to pull income from one revenue source to cover a bad deal in another.Perhaps you need to do a better job analyzing the deals completely prior to purchasing the property. 

I assume this is a "tenancy-at-will" agreement and that is completely legal.My questions:1.

You don't NEED a realtor to complete a residential real estate transaction although they can certainly be helpful - it just depends on your comfort level with owning all the steps yourself.   

If I seem completely naive it's because I am.

I’m in the process of completing my 75 hr pre course for my sales license.

this ways, at least con #2 will be somewhat (not completely) out of the equation, and possibly even #3.

Also, any of the rent to purchase ratios are just general rule of thumbs too. 1%, 1.5%, etc... that is again going to be completely property and rent level dependent just as the 50% rule is.

It is up to you to decide if you are willing to complete the transaction.

Considerations: From the agency law perspective, if the agent didn’t complete its due diligence or didn’t disclose their middle role as an agent in the transaction, what responsibility will he take?

But if I sell mine and take that 200K in equity and but the other house, I will owe on it about 100K3) Refi my house and pay off my instate rental completely and move there and be mortgage free?