The question I have is really whether to pay off other debt first or accumulate more because this new debt is actually a money making proposition from the get go.

Learn the 50% rule... essentially says long terms all your expenses short of direct debt servicing will eat up 50% of the optimal GOI on a rental.Then learn about Cash on Cash.

This is likely to reverse as we come to grips with our burgeoning debt and fed govt payrolls are forced to sharply drop (as well as all the leech industries like lobbying).Sorry to interject a macro comment into your analysis, but you could not only have a property with minimal/nonexistent cash flow, but appreciation could be the same or worse.

Companies, especially issuers of debt instruments (bonds), in some cases may include a 'call provision' in the contract with the investor which allows the company issuing the debt instrument to call the debt (pay off the investors) prior to the stated maturity of the debt.

I would also think that the the lender could issue a statement that removes her future liability from the debt or deficiency in the future.

Good credit, income, low debt and even proof that I've completed conventional rehab loans in the past.

The big beneift of an LLC is flow-through taxation, which eliminates being taxes twice on the same income.

The risks you assume should provide you a premium over and above a safer investment.There are also tax advantages that may come with an equity partnership, so you shouldTwo: A debt financing arrangement (a.k.a.

At the end of the 4 years I will have converted approximately $60-80k of housing allowance to approximately 25% equity on a 30-year note [minus taxes, repairs, incorporation expenses, etc].Then, the gray-area: I have some cash on hand, and zero debt.

what about not buying debt?