Looking for a fresh perspective on our situation.
We own one house (single family home) that we just refinanced and converted into a rental. We are expecting around $400 cash flow each month from it.
In the meantime...

We're able to structure it as debt or equity, and while we raise rents, bill back utilities, and take it under better management, we're able to offer a great return to our investor/partner.

I don't want to take one debt or it show up on my credit score if I don't have to.  

Per the article above "A debtor (resident or applicant) can sue for a violation of the FCRA, as can the Justice Department.

@Kristopher KellyYou don’t inherit debt.But if they have a home with equity the debtors will after the equity in the home.Best to have a living trust to avoid probate.

If you don't want the debt or if financing is too expensive or difficult, use your proceeds.

A simple capital stack might look like:70% - Debt30% - EquityInvestors can come in on the debt or equity portions of a deal (or both). 

A buyer will either discount the price because of the assumable debt, or you hold out for a good valuation that more than offsets the yield maintenance (which may or may not be realistic).

And that doesn’t include if the borrower disputes the debt or fights the foreclosure.

So... is it a good idea to use the IRA money to pay debt? or