If you did not and it’s unsecured debt you could be out of luck on some or all of the money as depending on his situation unsecured creditors in a bk may receive pennies on the dollar depending on what he can afford and if converted to a ch 7 you would get wiped out.Even in 2nd position he could argue the property is underwater and wipe out your lien.

You would now be free & clear of any debt service and the expense impact of such.

Tax on Debt-Financed Income: Subject to UBIT.3.

I'm not a fan of their debt when I'm not in control. 

Federal debt and fear of hyper inflation has homeowners in a gridlock.

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!

Sometimes they can ONLY be used to pay down credit card debt on another card.

I have seen a lot of videos of people are saying "Utilize debt as the power to take these leaps," so this is where I am ready to go if the deals make sense.Thanks for anyones help Regarding utilizing debt- In my opinion the proper way to utilize debt is to purchase assets that throw off more cash than required by 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.