A friend of mine and I were having a debate about whether it was better to use debt or equity for seed capital for real estate.

Are you looking for debt or equity?

What right does Bill have to collect that $10 debt? ... or

No matter what - the house will most likely eventually go; either to satisfy medical debt or a repo after death.

Hi @David Levine, No, unfortunately there are many articles on the internet that claim you must replace your debt or retain the same debt ratios, but they are not correct.  

You can not acquire a property that is to be used as your primary residence as part of  a 1031 Exchange, nor can you pay off debt or improve your existing primary residence through a 1031 Exchange.  

Would you rather use your cash to increase your wealth and potentially use someone else's cash to help pay off your debt or use your cash to pay off your debt?

I, on the other hand, just love debt, or that's what it might seem like to anyone looking at my credit report, however, what I really love is the cash flow that allows me to pay my monthly debt and have money leftover to save even faster than I would've been able to had I had no debt.

The federal debt cannot afford higher interest rates since its the largest debtor. 2-2.5% will scare the weak but this allows a longer period of good RE prices. 

Portfolio = $1,000,000Loan = $900,000, interest only @ 10%Monthly payment = $900,000 * 0.1 / 12 = $7,500  { This is your monthly interest cost. }How many months will you be a debtor?