and you do not have to take out the same amount of debt. 

We had good jobs, zero debt (including our home/land/1 rental property), and I had just completed my undergrad degree program with no specific plan for how to apply it; there is certainly nothing wrong with any of those things but needless to say, we simply wanted more.  

If they do, I will gladly take the case to defeat them.One caveat though: in a 1031 exchange you need to get the same amount of debt or higher.

If the addendum is attempt to eliminate the appraisal contingency I would walk.   

@Zabrina HortonWhile one can partner with their IRA or solo 401k to invest in real estate by pooling their funds in an LLC, for example, very specific rules apply including not receiving any type of commission and not using debt financing.

if you borrow the money off your house, what would be the return after you service the new debt?

I said I had learned of a way that I could eliminate capex and management from the situation.

Half of it was given to me and the other half was exchanged for a debt that I did not think was collectible. 

Financing distressed debt acquisitions is likely the riskiest way to invest, and could very quickly buy you an entrance to the funny farm. 

I'm leery but open to the idea, as it obviously eliminates a tenant search and possibly vacancy.