If it just has regular outstanding amounts such as a few months of back taxes and utilities, you should just pay the relevant authority. 

At what number would you become nervous about having so much outstanding debt?

The first 6% go straight to the investorsNext 6% are split 70/30 favoring investorsRemaining 88% are divided 60/40 favoring investorsHe also takes a modest property management fee: 4% of gross rental incomeBased on our financial assessment of this deal, including all of the above investment brokering + property management fees, he'd essentially be getting 13-14% of gross rental income.Finally, he gets a piece of the action when we sell the property: Net profit (sale price - investors' down payments - outstanding amount on mortgage) is divided 75/25 favoring investorsHow common is this structure in the industry?

As a property manager my leasing agents would bring me applications where an applicant has broken a lease in the past.I would advise my leasing agents to ask the applicant to provide a letter on letterhead from the previous management company where they broke their lease proving their balance is $0.00 owing no outstanding balance.If they had any outstanding balance we would not lease to them until they have taken care of the outstanding balance. 

In my last house I had to clear mold from a basement and they did an outstanding job for less than $2,000.

If the appreciation is outstanding then you might be able to sacrifice cash flow for price.

The Performa and Projections are outstanding.

We currently have no loans outstanding on any of the props.What I think we should do next is consolidate these props and use the money we could get from selling them all as a down payment for a much larger, perhaps multi unit apartment complex.

At takeover, the economic and physical vacancy was 23.5%, we had 12 hard down units, 33 residents with outstanding balances and a mess of deferred maintenance.

Outstanding information and advice.