It's unclear on how that plays into your question about taxes.

debt consolidation 20 months ago" is very different than bankruptcy.

The tax paid from your lending proceeds should be the equivalent of your tax rate I would think.

.$847 in the bank699 Credit Score133% revolving utilization/over the limit maxed out personal credit cardsQuite a bit of other high interest debt/loans borrowed during the first year in business$3,580,000 Appraised Portfolio Valuation$2,139,400 DSCR Mortgage Debt in my LLCs$1,440,600 Equity (Appraised Value-Mortgage debt)8 Remodeled SFRs1 Converted Remodeled Duplex2 SFR Remodels currently in process2 Apartment Buildings - 13/14 units occupiedA little more experience to say the least234 Audible books in my libraryAs I'm sure any experienced investor can gather, having the sizable amount of personal debt as I do, supplier house account payments due, PMLs that need to be paid, etc, not having liquidity/any money in the bank is an ISSUE.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Your debt to income will be calculated per conventional guidelines and if you qualify with both your current mortgage and the new mortgage plus all the rest of your debt you are good.

And yes, that’s half the type.They miss the other half, which is not only active investing, but in many ways mirrors equity investing more than traditional debt investing.

If you convert it to a rental and sell later, you may owe capital gains tax + depreciation recapture, unless using a 1031 exchange to defer taxes by reinvesting in multifamily.Leveraging $100K in equity via HELOC or cash-out refinance can help fund the next deal, but ensure rental cash flow covers debt, expenses, and reserves.

Using mortgage debt at 6-7% on a refinance to pay off higher rate debt such as a credit card at 15-25% is a savings!

I have always feared debt but I'm finding myself high on equity and low on cash flow.