The properties combined have 75% debt on them leaving $175K in equity.

They are senior to their debt, so they can crush, make sur there are's any other secured interests on the property. worth the $100 or so for a prelim title report. 

So let’s move on.3 years later, we managed to sell that house for 1.3 million rupees, and use the profit to clear the debts, and make the down payment for a bigger house in a better neighbourhood for 2.7 million rupees.

I was enthusiastic when I read an article about debt relief act which has to do with Short Sale. 

Yes, you bought the asset with its debts.

My investing is limited to part time as I still have to work an 8-5 jobs since the income from my rental properties is not enough to support my family and the debt against them at this time.  

It reduces/eliminates the possibility of claims of discrimination, and puts real money in your hand.

There will also have to be seasonal maintenance activities such as cleaning of the gutters, emptying water out of the sprinkler systems, etc. to eliminate some of the weather related issues. 

I understand that for a Fannie Mae conventional loan, if you don't have tax returns for a rental, most lenders will count 75% of your rent as income and the full PITI as your debt.  

I'm looking to continue the good money management and saving practices I've established and put what money I was putting towards my student debt into real estate.