I probably have an average of $150k of equity in each house. 

As long as you close on your house before the foreclosure sale date, you're fine.

You can browse the forums for more information, but those are actually both pretty high risk options as well.Have you considered house hacking, or a live in flip?  

On my first house hack a few years ago, I was told that I would not be cashflow positive while house hacking. 

@Jason Sinclair, having a designer for a wife, I would answer that it really depends heavily on each house, the flow and usability of the spaces as they are, and the overall use of space in the house as a whole.That being said, while there may be a small shift towards more separated spaces, "open concept" is by no means dead, and in many markets, most people seem to still want to have connectivity between their communal spaces.In fact, my wife's current flip is a split level (although technically it is a split-foyer), and she is taking out a structural wall to connect the kitchen, dining and living areas.  

Cloud, MN area have a recommendation for a good and fair exterior house painter?

I ended up renting a guy and his girlfriend a $10,000 house for $200/week. 

I am looking to do this on land where old vacant houses were demolished. 

As a side note, House hacking in Socal is a slow game.

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?