In this case even if the project went south and you broke even or even lost money, the equity (debt) you used would still be covered by the income you are earning on the rental property. 

Additionally, since my parents are nearing the retirement age, I'd like to prioritize low-debt, high-cashflow deals.

prices are high, interest rates are high, there is tremendous demand for inventory, and - one thing that doesn't get mentioned enough - a record number of properties are debt free. 

Never invest in Longterm assets with short term debt.  

Consider lease optioning the “now keeper” and walking the created debt forward if you lease option buyer can cash you out. 

That all makes sense to me but it makes me wonder how can you be "financially free" or even just start building wealth if you are 100's of thousands of dollars in debt at all times.

we invest in defaulted debt and have looked at it in the past.

Everything in the article makes total sense...wealth building helps through appreciation and debt paydown over time.It makes sense that chicago suburbs with strong school districts perform the best. 

My husband was able to consolidate and re-finance the debt after we executed the deal but this was only possible because we bought a VERY modest property of 70k as a learning tool to really see what buying a home in CR would be like. 

My sacrifice… no haircuts and no fast food. 1 job full time, 1 full time side hustle. 0 debt at the time other than student loans.