Since I have no debt or mortgages on my name, I have a few to go prior to having to worry about DTI.However, you intrigued me on how you are getting deals to work with DSCR loans above 8% (that is what I have been quoted) ??

Second will be how much debt you have, you said you don't have any expenses except tuition which is good, but do you have any student loan debt or are you managing to pay as you go?

At this point they are like an unsecured debtor and will most likely sell that debt of for pennies on the dollar to some national collection agency.

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).

Your plan seems good I’m just hoping to understand if you want to avoid debt or not.

Some states do not allow cash out refinances to go towards personal debt (or up to a certain percentage can only go towards personal debt), and still be considered a "business purpose loan". 

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).

Just make sure you pay back your debtors first, then your credit card, then yourself.Sorry to hear about the tough situation.

It is better to invest cash into new product development, marketing and distribution than to pay off low interest debt or maintain a huge equity position.

Regardless of approach, how did you arrive at your chosen relationship with debt (or lack-thereof) and what major points did you consider when arriving there?