I've helped 6-7 different investors move money from Oregon to Wyoming in the last 15 years and they are all happy they made the move.Consider finding a market that has a better long-term outlook, economically and legally.

Used funds to pay other debt off plus out cash in the side.  

. - AOA Debt Reporting Service: letter sent w 120 days to pay (with credit bureau reporting) after which it rolls over contingency plan with collection agency getting 38%.I know I would not want the task for what they charge.  

Virtually anyone lending HM in 07 to 09 had a lot of bad debt.

Debt Terms - We anticipate re-evaluating a refinance in 12-24 months, as the capital markets improve.

It's debt you'd still have to pay back, but at least you will not touch one of those two amazing interest rates. 

THEN, I plan to purchase the second home using a FHA or conventional loan (3%-5% down), for which I will likely pay the monthly cost out-of-pocket, maybe with some rental income support if it is a duplex.My concern is, I do not want to spend my savings or weigh down my debt-to-income ratio so much so that I cannot qualify for and pay the down payment and closing for the lending on the second home.Questions: - With the first home being multi-family, 75% of the rental income (or potential rental income initially) will relatively either maintain or boost my debt-to-income ratio from lenders' perspectives, right? 

Quote from @Cheryl Abram: What legal filed docs are LPs entitled to see to help validate a deal's failure?

Consider offering equity partnerships, debt financing with profit sharing, or preferred equity, where investors get a fixed return before you share profits.

Look into a DSCR, Debt Service Coverage Ratio, loan where the rental income can be used to qualify the cash out refinance instead of your personal income.To Your Success!