If the location is bad, maybe cut your losses.

Is leaving the 60,000 in equity on the first home a bad idea?

If the tenants destroy the property, then they could loose their benefit (at list that's what the Sec 8 office told me I never experienced it) Also Landlords are allowed to give surprised visit to applicant's current resident prior to approval and if the property is kept in bad shape or they don't allow you to enter and inspect, then you can decline the application.

Fire that realtor and get a better one..... there's no way a house that has issues that bad should even get to the inspection point (unless it was at a price that made sense).I look at properties all day, if I see something I pass it to my realtor he takes a look, if it passes that he'll go view in person.

ahh, i know what APT you're talking about. that area is not too bad. but if they are already being rented for $550, you're going to have a tough time increasing them much more than that.

And that is something I will never tell someone to do, because while the chances of something bad happening may be slim, you are technically committing mortgage fraud.Not what you want to hear, but hopefully that helps. 

Again, it probably goes back to me thinking people are good until proven bad.

I would rather keep my cash any day than put it to work on a mediocre property and area and hope for the best strategy.If you are worth millions and want to take  a small percentage of your money and take a roll of the dice on something that is different than saving up a long time to get started and buy a mediocre property and it becomes nothing but headaches and saddles an investor with bad debt so when a good deal actually comes along they are stuck.

Though with the next down turn in the market (whenever that is and how bad is a role of the dice) foreclosure rates will go up for sure.

- What is your thought on the 30 year amortization, is that a good or bad thing?