You can sue all you want but I'd say you have described the need for 'earnest money' and it is time to say 'next'!.

With long term rentals (or any house aside from a flip), you are unlikely to make money off the sale of the home if you have only owned it for 2 years after you pay the realtors and other fees.

As rehab progressed and the HML paid out the 82K progress payments, she took that money and paid out her outstanding dues on other projects.

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

The easy money is gone.

However, the money I’d save by not paying $3500/month mortgage is $42,000 after 12 months – thus recovering the money paid on the capital gains tax.QUESTION: would you advise selling the rental to pay off the new home and take the $1400/month rental income loss (and gain $3500/month savings) or would you advise keeping the rental?

My wife and I are both teachers and I also coach three sports to help make more money. 

Thanks.Why are so many wasting their money on courses.

@Trevor MorrisIf you are looking to do value add renovation for your next investment, a HELOC seems like a great move. so long as the other investor is okay with loaning out the HELCO money as well. 

That's if we're thinking strictly Houston, but for such a budget I'd put that money in a diff city or diff investment vehicle.