Other equally contributing factors you want to consider is the properties positive cashflow, asset appreciation over time, debt service paydown over time, as well as hedging your dollars against inflation - all of which make real estate such a great investment especially when you have the right property!

To that end, in most cases even if the properties are owned within an entity, the principles (investors) will need to personally guarantee the debt.

Eliminate debt, establish a budget, and save.

So this is common thought and why it is a real challenge to get debt secured by the ADU value add at higher than 50% of the addition cost. 

Congratulations on being close to debt-free!

You could have a $500/mo power bill and it will not be included in debt to income ratios, but a $300 solar payment will be considered for DTI. 

@Philip MurphyYou would need to have the taxes paid and payoff his mortgage for you to receive clear title and title insurance.All debts on the property must be satisfied to provide clear title

Monthly debt service at 7% interest.

What no one is talking about it the amount of debt families are carrying right now.  

Tell buyer, 1) I don’t have funds required to close. 2) you can raise your offer to the amount needed to pay off both debts or walk away. 3) it’s going to auction in 2 months.