That said, none of what I wrote above is legal advice.

That's the weighted interest rate of all your debt on that property if you take out a $300k 2nd at 7%.

Some of the most important factors in REI that will help you choose your path are your comfort level with debt and general risk tolerance and your available time. 

@Warwick Ferguson  If you have a US business you can leverage your portfolio with debt.    

Drew:  I own a debt and equity firm that arranges financing for commercial and multifamily real estate across the country.  

This is for the average investor as well, if you can show you don't need a loan, you can probably get 75%, but your debt coverage ration will be going up, so, how rich are you?    

We have not exceeded debt to income ratios etc.  

@Nicholas MischThe ARM product was developed by bankers to induce folks to get a low introductory rate that they could get approved for based on their income and debt levels because of the lower payment terms.  

@Dakoda SpencerIf you start doing lease options, lease purchase, etc that has its own set of legal issues.

Hey Jacob, I would recommend top 10 ways to protect your assets (FREE E-Book) by Royal Legal.