After you get 22% equity, by a combination of paying down the mortgage and appreciation, you can apply and have it eliminated.

Keep in mind the 50% rule is for expenses EXCLUDING debt service, therefore the rule would look like this: cash flow = gross rent * .5 - mortgage payment (principle and interest only).So if your gross rent is 1100, then:1100 X .5 = $550 minus $350 mortgage (just tossed in, not a real number) = $200 monthly cash flow.

15 yrBut we don't like debt so....not norm here ;)We now have 10 yr on primary home.Investment was 5 yr arm and we begged.Cash and equity other deals.

In addition to the obvious contribution limitations, the dangers of self-dealing, and general ease of “messing up,” a self-directed retirement plan also eliminates the ability to take advantage of significant real estate benefits as depreciation and many business deductions.Jeff

You may want to contact your bank and find out about HARP , it's a govt program that if I recall correctly can eliminate the upside down amount on the mortgage .

If the seller's BK eliminated the debt on the house, there is little benefit to them in a short sale.

If you're looking for the most cashflow without a lot of debt, you could take, say 200k out on a refi, and buy as many properties as possible with the cash(somewhere like cleveland).

( I think it would be helpful to say I would be graduating with zero debt since I'm on full ride scholarship as long as my GPA stays above 3.0)Sorry if this is a childish question for biggerpockets or the wrong place to post, I've been reading alot here and was just looking advice from the people with experience here.

Bigger pockets Community, My first deal just went down the tubes b/c my parents who where my cosigners have "too much debt" (they're investors) according to wells fargo.

Do they take the loss, divide by 12, and add it to the debt portion of the ratio?