If another veteran assumes the loan then their entitlement will replace the sellers, and the sellers entitlement can be restored to full.Great post!

There are types of deductible debt: - Acquisition debt (a loan to directly acquire an asset)-Renovation loan (loan against an asset, used to renovate that asset)-Replacement debt (a loan which is a refinanced replacement of an initial qualifying replacement). 

FYI - not legal advice.If it's not a formal assumption and it's a straight sub-to, typically the seller remain personally liable for the debt if the investor defaults.Essentially, what can the investor do better than the seller after refinancing the property? 

@Jordan BrownWith $50,000 saved and no debt, you have a strong starting position for real estate investing.

That would be ASSUMING the debt.  

If I create a debt fund that offers 9% interest on first lien notes with a 5-7 year payout, would that be attractive to high net worth investors?

If the property can service the debt at 90% leverage between a senior 1st and the seller second, you're looking at a good investment!

I have mixed feelings about it, so we'll see where that goes.Fortunately over the last 6 months we have been able to pay off a decent portion of the debt, so things are starting to look up. 

Definitely come to the Midwest with no debt

Though DSCR gives you a better picture of how the property is projected to perform vs debt service, you can't rely solely on one measure to make a purchase decision.