As long as you qualify to carry the debt you can keep buying houses with just 20-25% down until you can't carry the debt or you run out of the 10 mortgages.

My agent said the bring in $2200/mth but have no other debt or payments.They are stressed about having to move (it would stress me out facing packing all that stuff up) and willing to pay more to be able to stay.I feel we just screen them like new tenants and if references check out I'm leaning towards continuing with them, although they are below the 3x rent income requirement.The property would probably need $3-5k in carpet and paint to ready for new renters so it would he great to have a good built in tenant for a while.Anyone have a situation like this go bad that can share some things to watch out for??

Essentially, the debtor business reorganizes and operates the business as a fiduciary for the benefit of creditors, and there is usually a committee of creditors which must vote to approve the plan. 

Otherwise at some point the mortgagor could use the fact that the note was not in compliance when it was written as a defense against paying the debt or foreclosure. 

They will make sure that you are complying with all the notice requirements and their fee is charged to the debtor.

I don't recommend adding debt or stress if that's what it would cause.

I am a debtor's attorney. 

So that will help save you from debtors jail also.

Would I be hindering my potential for owning a dream home by having so much debt?

This is a unique situation where we want to offer Person 2 30% of non-voting stocks, but the end game is Person 2 gets to have 50% of net profit for providing financial backup up to 500k in the form of supplier debt or cash on projects that we present Person 2.