Listed below is a summary of my financial and credit profile: Income/Savings:94K annual income (58K from primary employer + 36K combined from part-time work)20K in savings and have an additional 20K towards a downpaymentCredit scores: TransUnion 649, Experian 665, and Equifax 637 as of 12/10/11; credit simulator claims that my scores should jump ~20 points if I pay off my credit card balancesDebt:About 3K in credit card debt; all currentAbout 380K in student loan debt (majority from medical school); but all student loans are current and in deferment.

Well I could have gotten my own policy but then there is double the money and debt service involved which reduces margins.I was added as an additional insured because the insurance company employee said it would not cause any issues and then the insurance owner 4 weeks after closing gets all up in arms.The existing policy is much cheaper than the rates I found.The building is 30 years old and once it hits 30 other carriers told me unless it has new electrical,plumbing,roof,etc. they can't insurance it for the best rate anymore.Her in place policy was originally written 10 years ago when the building was only 20 years old.Kind of like an existing lender will do much more for you than a new lender where it has to meet their parameters.I asked about getting a policy for myself and adding her but the underlying mortgage would want her as primary so that wouldn't do anything.I am thinking I can make her part of the corp I have set up for that property with a non-controlling interest.The underlying lender could be told it was for estate planning and asset protection if any questions arose.The insurance company guy says that mortgage companies sometimes do periodic checks on title transfers to check for wrap deals but I think that is being a little paranoid.

I am young and I keep 10-20% of my long-term debt in cash.

The property owner is willing to take the loan she has the property paid off, a car no debt.

We haven't been debt free since Andy Jackson paid it off.

The question I have is really whether to pay off other debt first or accumulate more because this new debt is actually a money making proposition from the get go.

Learn the 50% rule... essentially says long terms all your expenses short of direct debt servicing will eat up 50% of the optimal GOI on a rental.Then learn about Cash on Cash.

This is likely to reverse as we come to grips with our burgeoning debt and fed govt payrolls are forced to sharply drop (as well as all the leech industries like lobbying).Sorry to interject a macro comment into your analysis, but you could not only have a property with minimal/nonexistent cash flow, but appreciation could be the same or worse.

Companies, especially issuers of debt instruments (bonds), in some cases may include a 'call provision' in the contract with the investor which allows the company issuing the debt instrument to call the debt (pay off the investors) prior to the stated maturity of the debt.

I would also think that the the lender could issue a statement that removes her future liability from the debt or deficiency in the future.