We were thinking about starting with extending the drain pipes further from the house and installing a new sump ($231 for a good quality new pump on Amazon) to see how much that eliminated the water.

You pull the 80k out of the house, which then covers the debt service on this money.

But getting into matters where people need to improve credit, earn target amounts as taxable income or paying off debts requires an indepth knowledge of these matters.

I also bought a primary residence which did not help my debt to income ratio back in 2010.

This comes in front of all other liens or debts.

The underwriting guidelines will focus on your credit score and your debt-to-income ratio (DTI).If you're earning $30K per year, that's about $2500 per month.

Chris, the basics of any loan (and the attractiveness to the lender) come down to two main factors....cash flow (aka net profit, income, debt service) and asset coverage (aka net worth, ARV, secondary support, LTV).

The debt can be unsecured, or he can put a Note on it.

There is also the possibility of a loan agreement being draft as non-recourse or recourse (when the law allows).So, if the debt exceeds the value of the property and the state is a non-recourse state, the bank will not be able to pursue the borrower personally (barring a separate agreement like a personal guaranty).

Although I am a big proponent of using OPM, you may want to keep in mind that each time you apply for an investment loan you increase your debt to income ratio which could make obtaining new loans a bit more difficult.