This neighborhood had suffered badly in a hailstorm about 18 months earlier which was why a lot of us had replaced our roofs.

(For a example of how bad it can get just look up Morris Invest on the forums). 

It wasn't a bad outcome though, because I was able to add bedrooms and square footage to the 2nd floor apartment...and charge a commensurate rent.I mention all that to suggest you should check with the town's zoning board and see if you can determine the likelihood of getting the property rezoned. 

Leverage is bad when the market dips or crashes and you feel the ripple in your wallet.

if it's good, move forward and thank your mentor, if it's not good then he will not steer you towards a bad deal.

You really just need to understand what's good debt, what's bad debt and how to really maximize the usage of money.

Scrambling to find the target property after selling yours can force you to take bad deals.

Refinance out $60k and just keep them in as renters telling them they are free to purchase anytime for $60k or until I figure out something else. not a bad option.Are there any no doc, asset only 50% ltvs for investor owned properties?

It seems like the market's been so hot in Bryan/College Station that it may not be a bad idea to sell and roll the proceeds into something bigger and better.

If it's in bad condition (foundation, roof, peeling paint, unlivable)  the bank won't lend on it, so be careful there.