Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

This would lower your down payment requirements, lower your interest rate, lower your property taxes, and MAY make you exempt from state income tax.

HI Vince, as long as you are vacating your current primary home and moving into a new primary that is acceptable, but just make sure you obtain a 12 month lease in order to use the rental income to offset your mortgage payment and not getting hit twice for your current mortgage and new mortgage.

Be careful about using your current home equity as a down payment on another property.

I bought the duplex for $145,000 which put monthly payment at $918 monthly.

The letter also stated that the current landlord should have begun collecting payments toward to the security deposit upon receipt of the letter they provided me, which they did not. 

This was my first investment property and I used a loan from my 401k for the down payment and also used a local credit union for a 10% down payment on it when I bought it.

The down payment is based off the total adjusted acquisition cost – the purchase price plus the cost of renovations.

If you have a tenant that doesn't pay and you have to evict, you might lose 3 to 5 months of rent payments plus have make ready costs of 5k to 6k depending on what they do.   

Of course if rates go down, you should be good, if they go up, then have them rerun your payment amounts and purchase power so that you're good to go there.#3.