If I didn't realize before that this was the expensive and slow way to go, I sure did after writing that down payment check.

Then on Jan 8th, 2013 the same company recorded a withdrawal of notice of election....I was behind in 2012 on purpose because I was advised to pursue a program to reduce my monthly payments on the house using a government program.

I cannot afford a higher down payment than ~4-5% right now, which brings me to my main question: is Harrisonburg VA a good market to start out in?

The answers to those questions may affect whether it's more favorable to keep it (so you can RAISE rents regularly, and reap the benefit of future capital gains), or owner-finance it to another Buyer (thus, why not demand a sufficiently high down payment so that you can invest in ANOTHER?

Your paying for it, till it's sold to the lease option holder.Likewise for evections and non-payment.

There are some lender who offer jumbo loans with 5% down payment but interest rate will be higher. 

Each seller will have their own criteria but your down payment will be the most assurance you aren't going to walk away from a deal. 

The credit score and down payment requirements are substantial and the rate sucks but if it's a good enough deal you don't want to lose it over a bad rate.

A=$2100 and B=2100 total $4200.00So basically I almost doubled the rental income.I had put down 25% percent because it was not home owner occupied, Down payment = $143,500Repairs and remodel cost for both units about $30,000 totaling around $180,000 on my HELOC.I would like to do a cash out refi, to pay off my  HELOC, however since it a duplex, I dont know ARV.1.How much would my house need to appraise for me  pull most of my money back out?

Well now I have a little bit of savings after working hard and saving like crazy for a LONG time and I've decided to buy a home cash in Memphis so that I have less risk (vacancies, HOA fees, mortgage payments, etc. all scare me, being a newbie, so I see this as the lowest risk way to get started because even if the home sits vacant for a year I would only have to pay taxes and insurance).