It's a terrible idea to borrow money to borrow money. If money is a problem have you looked at refinancing to free up some equity or had a look at a joint venture or Vendor Financing? 

You need to seek legal help immediately. This happens way to often and it can take forever get these people out. If the utility bills are in your name than you are in big trouble from the financial side. If the water/electricity is in your name I'd consider cutting it straight away and see how long they can last with no hot water and electricity. I know it sucks with it been a family member but it is your money that you are losing. The government has plenty of houses for people in these situations. They made the choice not to pay you rent.

Painting and carpets would be an idea to increase value. I wouldn't see much point in a second bathroom in a 2bedroom house or a veranda(unless you built it yourself it would be expensive and i don't think you'd get the equity back from it) . Have you considered a 3rd bedroom. Sometimes the cheapest and smallest thing can add value so scope out homes in your area and see what styles are selling high and why

I'd go for CG in your first purchase. Just to start off strong. It doesn't mean you can't have both though. Renovations/deceased estates are great ways to boost cashflow and purchase under market value

Hi Catalyst,
I know its not going to be a massive hot spot or boom overnight but its an area that has plenty of potential for medium to long term growth also all the properties I have there are 9.8 or higher yields(good cash flow with current interest rates)and the pricing fits my critera. Its got a lot of minor infrastructure projects happening with a 65million dollar oncology centre been built and ready for completion in 2015(most likely 2016 knowing goverment projects) also they are predicting the population to grow by 30% in 20 years

I invest heavily in albury region. Prices have grown a little but I think thats more due to investor activity(thanks to low interest rates). Depends on budget but there are plenty of opportunities there. They don’t have any major infrastructure work planned but they have a large number of smaller projects in the pipeline

The idea of borrowing money to borrow money is never a good idea. Have you thought about a JV with a family or good friend.

As above said sell the one with the most equity or the most troublesome(annoying tenants)lol Sydney is ridiculously overpriced so you'll get a quick sale and personally in my view a overpriced sale. Pay down your debt and live off rents/cashflow. Another option could be to vendor finance and get some extra cashflow.

I only have one jv and its with a mate but we have seperate loans. It doesn’t have that many faults as long as you and your partner have the same goals and plans.

Pros: Easy to get your foot in the door
Less capital needs to be put down

Cons: Risk of partner defaulting
Have to access equity with partner on title.