My husband and I have W2 income and excellent credit and no debt except our mortgage. 

Probably needs more info - is there existing debt on the current rental property?

I would be about 160 dollars in debt again, the old house is 38k from getting paid off.

Debt-  we paid down all personal debt and some REI debt.  

I think there's definitely a better return not paying mortgages off, but it's also nice to be free of debt.

So unless your high volume trader in real estate and real estate debt the chances of this happening to you is as I said like the same chance of getting hit by lightning or being killed in a commercial plane crash. 

Maybe in the 40+ staff range Im guessing.The interest rates on the debt deals I have done have been higher than most of their peers.

Working our on capital stack for a large multifamily development and needing some different options with private debt/equity.

 - the debt will impact any other loan.  

You can do a HELOC on rental properties with some lenders to access the cash, but you’re essentially taking more debt out on them.