Equity itself does not matter.You can also purchase less than what you sold (thus decreasing equity or increasing equity depending on whether you add cash or not) and you may take cash from the sale (also decreasing equity) but in those events you are doing a partial exchange and you pay tax on the difference without jeopardizing the remainder of your exchange.

What are the quickest ways for you (or your wife) to increase your income or decrease your expenses?

An influx of REO's (Real Estate Owned - foreclosed houses that banks are reselling) can drastically decrease housing prices in an area.Now if these factors are not what is desired, the key is to adjust your expected sell price.Price overcomes all objections.Even in some of the worst markets in the country, houses are still selling.

My properties aren’t in downtown, so i received a decrease.

In my area, if you purchase a smaller multi family at fair market value, it still might not throw off cash flow for you or even decrease your current housing expense from what it is now.

Surely it was possible to decrease poverty. 

I am sure I can decrease to half but like to see what others are thinking) repairs $5500Supplies $1600Taxes $12,561 (based on my assessment, this expense will increase to $16K after sell)Utilities $13309 (Will have tenants pay this.

I am sure I can decrease to half but like to see what others are thinking) repairs $5500Supplies $1600Taxes $12,561 (based on my assessment, this expense will increase to $16K after sell)Utilities $13309 (Will have tenants pay this.

Most of the current craz seems to be driven by low inventory with no decrease in buyer demand.   

Here comes the number dump.PP - $219,900DP - ~5% - $11,000Mortgage - $13,75 (which will be less while I live there as taxes will decrease)Rent $950-$1,000Vacancy - 10% - 1140GOI - $10,260Insurance - $800Repairs - $1,000Advertising - $100Expenses with the loan / month are about $1535Total expenses  including loan 18,400Now obviously when I live here I'm (losing money) as I'm paying to live there which is fine with me as it costs about the same as it would to live in my current house (which I'll also be renting out).After I move out I will rent both sides. for about $1,000 each making the GOI - 21,600 leaving about $3200 or 266.66/ monthThoughts?