I believe that every Landlord should contact their representatives and let them know that it is not right to collect a debt from the Property Owner that they did not incur.

Normally a HELOC they want to see equity and debt to income ratio.

So, if you believe in bad debt vs good debt, then use good debt to speed up success.

I will make roughly $38k this year at my job and my wife stays home with the kids.I recently got a settlement for $700k, opened up a LLC and put my rental property in it.  

And, in comparing myself to most college graduates (who tend to have, on average, about $29k in debt upon graduation), I'm not in terrible shape. 

Once you have sold the property the owner carry becomes a debt instrument and is not eligible for a 1031 exchange on it's own.However there is a way to still combine the owner carry note with a 1031 exchange.  

A guy in SF with 5 or 6 properties is doing pretty well assuming his debt is under control.Account Closed that was a made up example.

The equity is the difference between the debt and the FMV.  

I have no credit card debt, just student loans which are paid just like they should be.   

If you are going to finance it, the majority of banks will not lend if you don't have experience no matter how good the debt service is.