I understand credit enhancements and additional guarantors are sometimes required but to be unable to cover escrow funds and to give away deal ownership for that service is kind of crazy but back to the main point, the real issue is when the Co-GP is not truthful about their true role or embellishes their portfolio/ unit count. 

Worse than negative cash flow is buying out of negative cash flow at current rates.Note I put forth certain effort to keep my leverage high   Until the recent rent hikes, it was fairly simple to refinance every few years and keep the leverage without large penalty from rate differential.  

However, it's fair to question the integrity of the management since it's in-house.

I predict that the guys who are fully leveraged and cash flowing $100 per month will be motivated sellers when the next big correction happens.actually its either them or they walk and its their lenders selling that is what happened in that time period.. and was pronounced in certain markets.for me personally  I don't want to risk  my credit and finances and borrow 75k to make 1200 a year... or even 2400 a year if its a market that has a history of no appreciation and I don't feel there is going to be any significant appreciation.. 2 to 3% a year does not cut it.but I will take 500 a month negative or 10k a month negative if I think there are huge gains at the other end.. 

The credit unions tend to have lower fees and offer solid business products.

That way, you might preserve some of your monthly profit while still knocking out that line of credit.

I have no debt aside from the properties and regular monthly credit card debt.

That affects your credit for instance.A better way to look at it is voluntarily making the mortgage payment for someone.

@Dan Thomas, sorry you are going through this , i think supplemetal insurance is key , I use superhog & so far reasonable & respond fairly quickly 

Is the credit over 780 for both #2 applicants, or is that an average?