I've considered potentially using the immediate equity to buy an out of state multi that produced enough cashflow to pay the 2nd position debt plus offset our holding costs over the years. 

@Julian HicksProbably your main consideration when investing in real estate in another state is to be familiar with that state's tenant and landlord laws.What you don't know CAN hurt you.

The main problem with doing this is that you have to have different versions of the lease for it (or draft another document that accomplishes what you are trying to do).

On August 18 I am ending my lease so I can rent a room instead of an apartment to save money and pay down debt so I can be in the best position for homeownership next year.

@Grant KeeblerThis is of course the main reason no one wants to invest in the hood.You are the one with some money, you own the house he lives in, and you have recourse to law enforcement.

Would suggest finding other means for sure, since most lenders dont like to see that much cc debt even if you are making all payments on time and pay them off each time. 

Doug I have met many mainly when I bought their home at auction because they let their kids borrow against it and blow the money.and of course in my 30 plus years of loaning HM I have seen a bunch of this activity over the years.18 months ago I had a wholesaler contact me ( which is rare because I generally wont talk to them)  but he got through to me and it was a property in Charleston SC were I build.. and the price was right .. but when I did a quick title search I saw that he had recorded a power of attorney for this lady that spelled out that he could sell the house and pay her 100k  and he was offering it to me for 196k.. so I called him on it.. and said hey there.. this lady obviously does not know what she has  the value is in the lot.. so no real up side as is unless you build a new home so for me to buy it at 196 was about market.. 

At the top (where we are today) I'd rather acquire a B+/A- asset with an 7-8% yield and a long (15 (agency) to 35 (HUD) year) fixed rate debt instrument.

The main chunk of the price for HVAC is running the ductwork. 

@Christopher Winkler My understanding is that if you don't file a POC before the deadline, your debt is not included in the payment plan but your debt continues to exist and collect interest.