New to the area and I dont know the area well enough to make informed decisions.

I would probably just hold it and rent it out (either long term or short term depending on your goals), but its tough to make a decision on your problem without all the info.

I see the better decision will be to continue working with my job full time until I can get more loans and go into the realtor position part time while building up reputation.

Maybe you can make some improvements and increase rent, and slowly improve the side you're living on while your living there (which is what I'm doing).Hopefully I was able to add something that might add value to your decision process.

Investment decisions are based on an individual's criteria.

You will gain insight if you talk to a few PM which will help make your decision. 

If you are looking to tap equity and put that money into another property, a fixed rate cash out refi is almost always a better decision.

They don't have to follow any strict criteria and can make their decision on the full picture of you as a borrower.

Which is why its a tough decision, If she wasn’t a week away from closing or just got denied in the beginning of the process I wouldn’t think twice about this deal.

Mary,Mortgage rates are still historically low right now so using the equity of your home(s) is a wise decision.