Hello Everyone,I was talking to an investor in regards to financing and his suggestion was to get a 500k loan to put towards all current debt, but wasn't sure all the factors that may be implicated with going this route.My current portfolio has 2 properties (1 LTR, 1 MTR = 370k), and current debts: HELOC at 54k and a vehicle at 40k. 

On the other hand, a home equity loan gives you a lump sum with fixed payments, which is more predictable and great for one-time expenses like consolidating debt or buying a rental.

Paying off the $4k in defaulted debts on her credit report, which she probably could have settled for 50-80% of that total. 

Comparing Equity with debt is kind of apples vs. oranges. 

I have a few properties that have increased 30% in the last year), and of course the tax savings + the debt paydown from the federal government or tenant.Overall returns are insane: I'm a buy & hold investor.

Supposedly the second lien holder is a credit card debt collector, they were listed as the defendant in the foreclosure case.

Then when you get ready to retire, if rates have come back down and you want to "earn" more cash flow by getting rid of your debt, have at it. 

Do not refinance a primary residence for this because you will be increasing your payments, but not getting anything for it unless the investment you purchase is giving you such a great return that it doesn't make sense not to do it.I have used HELOCs on both my primary and investment properties (when I could get them) as short-term debt.

We calculate gross income as all dollars coming in except taxes.Our clients gross revenue is the room rate (top line) expenses minused out and then they receive their net income.Net profit (or loss) would be then when they subtract debt service, property tax, insurance, utilities, etc.

The DSCR will still have a personal guarantee, and whether reported to the credit bureaus or not it needs to be disclosed as a debt, so there's no benefit there.