In other words...right now probably isn't the time to do these deals, especially hard money as the risk of you getting caught short by a decrease in value before you can refinance is huge.

A Broker report just released for our market as a whole from our Association of Realtors shows sales down 2%, median and average price range up 7% and inventory decreased by 14%.

The main benefit here would be to decrease your cost of living and build something that will have much more reasonable cash flow in four years.  

Adding a 15 year mortgage into the mix only increases your risk by decreasing your monthly cash flow.

He said they were recently able to buy more properties here because other big buyers had decreased their number of purchases.  

Using a successful property management company to take care of everything from the beginning can decrease your risk and increase your profits.

We're also looking at refinancing the mortgage on this property to decrease the monthly payment, adding to the principal that we can pay ahead on the loan every month.It's good to have all this input and see that either decision is a good one, we really appreciate all the input. 

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.