Usually partners, capital partners want to see prior performance before being a debt or equity partner. 

My dad taught me decent financials growing up and I'm the only one in my family who hasn't made a financially poor decision(some sort of bad debt or bankruptcy.)

Definition = a cash-out refi is typically defined as a refinance loan (i.e. taking a loan on a property already owned - either w/o debt or concurrently paying off old debt) where after closing costs, cash goes into the borrower's pocket.Typically above a threshold like $2,000A refinance loan where the borrower doesn't get any cash or is under the threshold (Example new $510,000 loan pays off $500,000 loan and $10k closing costs = net zero to borrower) is called a: Rate-Term RefinanceWhy are cash-out refinances such a powerful tool for real estate investors?

My parents are saying its in inconsistent and unreliable  income, but I think that's false because I'm young and as long as I don't debt or liabilities, I can learn to cope and network to find deals in any scenario.  

But in principal I agree that you should allocate your money to the area that will give you the greatest return, regardless of whether that is paying off debt or investing in an asset that generates a return (adjusting for risk).

Architects, engineers etc.Who will be liable for any debt or construction loans obtained?

Just for future advise if you have equity in your home its best to get a heloc ahead of time and just have that credit line open similar to a credit card so you can tap in to it whenever needed weather it be to pay off debt, or invest in your next property or for family emergency.

Credit scores are tricky because there could be items like medical debt or student loan debt that weighs the score down. 

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

In FL/CA the bill follows the user not the property, so I'd simply let the utility know that they need to seek compensation via the 'debtor' which I am not.