@Bryan BealAs with all ratios they are just tools as @John Warren and @Diana Dorantes have mentioned.  

She just bought me the following books *Not that I was peeking*How to Invest in Real Estate - Joshua Dorkin & Brandon Turner (The King & Prince of BP)Retire Early with Real Estate - Chad Carson (amazing podcast ep 293)Raising Private Capital - Matt Faircloth (Fantastic podcast on ep 289)Long-Distance Real Estate Investing - David Greene (Recommended by my hero, Andrew Cushman ep 279)Finding and Funding Great Deals - Anson YoungThe Book on Tax strategies for the Savvy Real Estate Investor - Amanda Han & Matthew MacFarland (both very smart people who talk in-depth and the new tax codes in ep 269)Super excited to dive into these books! 

@Diana Muresan the mortgage is 295k on house that was appraised last sept for 420k.

@Diana Muresan Thank you for your detailed response!

You also make the same $600 payment on Loan 10, except you also put all your cash flow toward the principal (you do should make sure the bank knows explicitly that extra payments go toward princ, not future interest, they're tricky sometimes).

@Diana Muresan First position HELOC’s are based on LTV, not on the equity.

Diana has a solid point as I'd like to get my money back when possible and if the rate equals to what I have not then i'd be okay with it.

@Diana Muresan Thanks so much, I believed that if you use the 203k loan then it must be owner occupied for a year before selling?

this is NOT REAL these are the FAUX lenders currently working the real estate lending version of he Nigerian prince scams... 

Welcome to the site Diana.