From a gray area standpoint, it's as bad as going 5 over the speed limit, or as bad as accepting that burned DVD copy from your buddy.

yes there is equity in the house, but I have bad credit.

@Marcus JohnsonI agree that going away to an expensive college is a bad and expensive way to 'find yourself'.However, its often very hard for people to 'go back' to school, so I'd push anyone I know who's unsure of what they want from college to at least go part-time to a local community college, taking basic courses that transfer well.You keep yourself in the 'student' mindset.

Plus if you have a multi-plex that defaults, it is because they have bad tenants in them that trashed the place and the landlord gave up.

2900 Square Foot Home that has been recently renovated in a not so bad neiborhood for 50k.

@Xavier Strong, I think it is a very bad idea but not for the reasons cited by @Bill Gulley.

The bad part is you will pay private mortgage insurance - basically an additional fee because you don't have 20% down

He has been successful for years doing this and I've heard of others doing this.However, others have forewarned me about lowballing offers on the MLS because I will create a bad reputation amongst agents.

Getting some local experience first, even if the deal isn't as good as out of state, might not be a bad idea.

The good news is there are multiple ways out so we won't get stuck in a bad situation.