For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

I'm assuming the debt, or mortgage, from this property will be counted against me as I am getting approved for another property. 

Instead you go and talk both debtors into erasing debt by 50% meaning you win and she wins.Time - as @Joseph Ball if they need their money yesterday, and houses are taking 3 months to sell, that's not going to work.Laziness - They're trying not to think about their problem, but it's hard to ignore getting the same mailer 5 timesHassle of conventional mortgages - Deals fall through, people snoop around your house, not everyone wants to deal with thatToo busy - See laziness above

The funding is generally structured either debt or equity and depending on which platform you use- vetted and underwritten in one form or another by the offering platform.

that would probably be ideal.Pros:-cut your expenses in half and save money-use the extra money to pay off debt or use towards REI-if you get a nice person, a roomie can be fun and make you more comfortable at night (for me anyway lol)-you can keep an eye on the person-you get a bit of landlording experiences because the roommate holds you accountable for timely repairs and maintenanceCons:-if you decide to claim it on your taxes, they count the extra money as income so put aside a portion to pay back-a bad roomie can be a nightmare as you can imagine-you can't walk around naked (maybe that's just important to me lol)-they may have unsavory friends and guest overlike Silvestre said make sure to thoroughly screen everyone.

Borrowers have no control, influence or say so regarding the sale of loan which they are the debtor.

I will put together two scenarios based on a few current files we are working, from the borrower (current debtor workout) perspective and from the acquires (representing the new buyer) perspective.

My wife and I have credit card debt and student loans to deal with, so should I first look for properties to flip and pay off debt or start to build with rentals?

This is about money management and if you can pay down debt or invest the money for a nice return then you are a wise person.

I like the business.. but mine was what I would consider a class A  so I had little to no bad debt or collection issues.. and I only had a few I had to clean out when someone skipped on me.