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. 

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.

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. 

Congratulations on being close to debt-free!

Readers should seek professional advice.I believe the Note creates liability for the loan, the mortgage creates a lien on the real property that secures the debt. 

Now if try tailing the entity on deed "up-stream" come to find it's a meandering trail of breadcrumbs, come to find they themselves are debt loaded via notes on properties to other entity, that again is a meandering trail ending in WY entity behind a wall of ownership interest in such so never get peoples names.  

@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.

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.