Its only $305/month and thats the only debt on the home.

(Assuming you have a good Debt to Asset ratio personally and high credit score.

Value minus Debt equals Equity.

However, some are sold subject to outstanding code violation liens, hoa debts, etc.The law doesn’t dictate this, your contract does.  

With VA, you have to have a 60% max Debt to Income ratio.  

My credit score is around 740, minimal CC debt, and no student loans. 

I called the two banks I have relationships with and they both told me that they take debt to income into consideration when doing the refinance.

I have a house in Texas I’m currently leasing to a tenant which is pretty much most of my debt including 10k in credit card debt and my wife’s vehicle.

I've been debt free since my late 20's, have some money invested in IRAs, mutual funds, and stocks, but only passively considered real estate as something that would only come about after purchasing a house to live in.

I have roughly about $15k of credit card debt.