I saw this happen to a lot of people during the last housing craze when people cashed out their equity to pay off debt or invest in real estate, only to have the bottom drop out, they lost the equity and were underwater, and everything else fell apart.We don't expect the market will crash that hard again, but a lot of people are predicting a hard correction with values dropping 20-25% in some markets.

In PA, with a certified, recorded judgment the debtor's income may be garnished. 

The only way you might be affected is if your current lender has language in their loan agreement that has specific liquidity, debt, or other covenants.Do you have a conventional loan, commercial real estate investment loan, or some other type of loan?

No debt or any payment.My goal is to be able to build a 200k net cashflow in 5-10 years, obviously sooner the better.I have a decent amount saved and is thinking if I should free up more cash by either selling the condo or refi and take around 400k out (interest rate is around 4.5% last I checked) for 30-year fixed.Any advice or ideas on strategy to achieve the goal of building 200k in passive income?

Using debt or not, the numbers do not make sense. 

More than likely it could be a flip project (debt), BRRRR (debt), or buy and hold with a determined exit (equity).

My wife and I have close to 300K in student loan debt at 6.9% interest that we will starting paying on in June 2022.  We have two decent paying jobs where we will bring in between $180,000-$210,000 a year before taxes...

Really depends on whether you are structuring it as debt or equity for investors. 

You two could've created an LLC together and negotiated equity in the deal for the money you are putting up and then you're not a debtor but an equity stake holder and don't have to worry about being paid back or being in a lien position. 

Quick story:  You are not supposed to live in the country without a job sponsoring you and if you are behind on bills, you get thrown into debtors prison.