Well if that small loan is in a bad area that can't sell, and big loan is in a great area, and the buyer got it at a steal, then it's not the case.You won't get many lending offers on low cost deals except for one company down in Philly, who doesn't mind taking over your property...

@Jonathan Taylor Smith not a bad idea, but from what I understand he does not want an entity because he doesn't want to report to the IRS every 3 months, hes using an accountant, details I'm not sure.

An umbrella policy is not a bad gap filler either.

Being conservative isn't bad thing (especially you're newer), but you want to be conservative and accurate at the same time. 

If you let it drive your decision making, it can turn out REALLY BAD.  

This may or may not be a bad thing but none the less, something you need to be aware of.

This neighborhood had suffered badly in a hailstorm about 18 months earlier which was why a lot of us had replaced our roofs.

(For a example of how bad it can get just look up Morris Invest on the forums). 

It wasn't a bad outcome though, because I was able to add bedrooms and square footage to the 2nd floor apartment...and charge a commensurate rent.I mention all that to suggest you should check with the town's zoning board and see if you can determine the likelihood of getting the property rezoned. 

Leverage is bad when the market dips or crashes and you feel the ripple in your wallet.