But in reality most owners with debt dont make much more than 10% on their cash and as a PM in most markets your making 10% with no exposure to loan debt or tenant trash's the unit etc etc.. 

Should I aggressively pay down the debt or let the tenants pay the debts off slowly over time?  

The question seems to be, "do I go into debt or downsize"?.

If we pick up this extra $24k, we can pay down variable debt or invest in other properties.However, this obviously is not good for cash flow.

So you end up with a new investment property free and clear of debt or you end up with tax free cash in your pocket and all remaining tax deferred into the new property.  

YOu tell him Sam... those of us that are so blessed by real estate and are on BP  we want to show that we give back in a meaningful way.on this deal did you use a broker for your senior first position debt or did you use a local community bank or regional bank ?

Leverage is great, and most people my age don't understand the art of good debt, or the fact that there is "good" debt.

Debt or no debt, I've learned that you ought never run out of cash or things get really tricky. 

Knowing that should either 1.) make you comfortable in adding additional leverage (i.e. more debt) or 2.) nervous because you don't think you'll be able to service that new debt.   

But if you can wait for your money and help a buyer buy it I can get a lot more people through the house on lease to own, and get a better price too ""There are many people that really good income in a good down payment but they can't get the mortgage because they don't have too much debt or debt to earnings ratio.""