So what I did was put in an offer on the Deficancy as the judgement debtor is good for the money..

It could be set off by S&P downgrading our debt or another war.

I can always draw against it some day.So the question still is pay off and not have the burden of debt or use that 87K to purchase cash flow props before the rates go up?

All you have in this respect is Joe saying what his earnings and expenses might be and Sally and George and John giving their data, not only are they not similar enough but you have a very small population to consider.Finance and accounting ratios were developed to measure similar investments or similar functions of a process so that an activity can be compared to another to measure performance or debt or asset levels.

I would ask where would you be getting a higher return on your money (newly identified project/pay off debt OR with current project and maybe a slightly higher vacancy rate)-are you able to lower your rate and still cash flow?  

It never surprises me what debtors will do to avoid paying a judgment!  

My other question then is: if I understand this correctly, a Lis Pendens can be from the foreclosure of the primary mortgage, but it could also be from something else, perhaps some other debt or lien. 

Given the courts very lax approach to these debtors I'm concerned it will be granted.  

It all depends on the investors emotional relationship with leverage if leverage makes you stressed and the pain of leverage exceeds financial gain then sure you'll try to reduce leverage even if it makes financial sense to keep debt or add more.Nowadays with the advent of the internet, systems, full service property management companies, and technology bills/payments can be taken care near seamlessly with little of your intervention.

Because once you're out of debt, the income from your "job" puts a whole lot more money in your pocket every month, instead of paying debtors!