You may want to research the term ' Debt Financed Distribution' Which does have a tax implication for the investors receiving a distribution.

Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.

Prioritize your financial stability.

@Paul Bommarito, are you concerned with their financials?

There is no requirement for @John Gillick to replace debt with new debt. 

When vetting a passive deal, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.

Start by getting pre-approved for a loan, ensuring your credit score, debt-to-income ratio, and finances meet lender requirements.

If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially? 

Can you do side hustles, cut down costs to get rid of these debts?

Depending on some other factors though it might be more beneficial for you to either pay off the other debt or invest it in the market.