@Chris PackerThis is a tough call.

Agree with @Chris Seveney- people LOVE making their ownership structures so complicated when you can mitigate risk in so many simpler ways. 

@Chris Pomerleau thanks buddy, if only I could get my fashion style as synced up as you I would be unstoppable!

Quote from @Russell Brazil: If you plan on selling other people's houses you can charge for that with a license.If you are only selling your own houses, there is no benefit...but there is substantially higher liability. 

As @Chris Seveney mentioned there is not really enough equity in house 3 to get a meaningful LOC. even if you were able to leverage enough to pay off House 2 the new rate you would be paying would be higher than the existing mortgage, so you would still be behind overall.Your ROI on those payoffs vs keeping money in index funds is not very good either.Lastly, remember that cash flow from rentals can seem good until it’s not.

Thanks for this, Chris.

Quote from @Austin Schubert: Quote from @Chris Seveney: Quote from @Austin Schubert: Would anyone have a sample template of a proposal that you've used in the past that goes over how your structure a deal with a private money individual? 

Hello, @Chris Rich! 

I responded to your DM, but it's basically what @Chris Seveney said.

@Chris F. what real estate license do you currently have?