He owns a large portfolio of SFH and is completely debt free - that is his claim to fame.

My issue is that the duplex consistently rented and making money, but my maxed out credit cards are killing my debt to income ratio.

When looking at structuring a deal with or without debt, tax impacts will largely hinge on the amortization of loan costs and interest expense.

No loans, I could own them all debt free.I have my own workers for most of the work so fixing them up would cost me a lot less than hiring another contractor. 

My credit is currently tied up with student loan debt.  

. $1,000,000 in mortgage debt * 6% = $60,000 = $100k in 401k/IRA * 60%.For everyone else, it matters how many financed properties you have. $400k in debt across five properties will have higher reserve requirements than $700k in debt across four properties. 

For instance, when someone defaults on a federal tax debt, the IRS may file a lien on the defaulted amount.

I have run into this w/ Equity Trust.Here are 2 examples, a debt and equity investment in your Norris Lake project.Friend's SD entity (IRA, Roth, 401k ) lends Allison Construction (you) funds to build a homeYou pay them a mutually agreed rate on a mutually agreed schedule,they earn interest in SD entity.

I'd be curious to hear the response from others, but I'd say 3 months of all expenses and debt service would be a good place to start. 

My favorite book on real estate is "the millionaire real estate investor" by Gary Keller.Eschew consumer and student loan debt as if your life depends on it....because your financial life quite literally does.