Here's a brief overview of my current situation:SFH1Acquisition Price: $1.6MCurrent Market Value: $1.89MLoan Balance: $1.2MInterest Rate: 3.75%Annual Net Cash Flow: -$12KSFH2Acquisition Price: $2.15MCurrent Market Value: $2.2MLoan Balance: $1.5MInterest Rate: 7.75% (I'm considering refinancing in the next few years)Annual Net Cash Flow: -$65KDespite being proactive in educating myself through BP forums and real estate literature, I'm beginning to question the sustainability of enduring annual losses from these investments.

Is Euclid a better choice for cash flow rate then?

Knowing that FHA rates are about 1% higher that of conventional mortgages? 

Check your mortgage docs and with your servicer.You'll also need to look into:- Impact on your property taxes: some areas have different millage rates for owner-occupied vs non-owner occupied properties.- Impact on your home insurance: you'll need a landlord policy and confirmation of what will happen if vacant for more than 30 days.You should also consider impact of selling.

Discount rates and capitalization rates (cap rates) are two fundamental concepts in commercial real estate (CRE) analysis.

Ask your hard money for an extension, higher rates, more downpayment?

I am sure you can do the same in San Diego and have better rates than LTR's.

I'm losing money $300 to $700 (with the last rent) each month on what was supposed to positive cash flow $176 a month on paper at 6.99% interest rate.

@Brandon Curry The first thing I would do is check the tax rate. $900 is a pretty big jump.

They do 10-20% down and 2% above current market rates..