Second, I am afraid the price of our home right now is at its peak estimated $635k and would like to use that equity money (roughly around $200k) to fuel my planned venture to financial freedom through real estate investing.

If you know who wants to sell and who wants to buy, you'll have the makings of a game plan in place that is second to none.

Bought our first rental property late last year- a vacant, second floor 2 BR, bank owned condominium. 

Not sure how my business is going to go this year but assuming I have $2k month self employment income, no debt, $50k cash reserve, and an excellent credit score...What is the likelihood that I will qualify for a mortgage?   

After closing hundreds of deals I can usually tell within the first five seconds whether the caller is serious and whether they qualify.

I'm second guessing some answers my CPA gave me recently and wanted to run the following questions by others who specialize in real estate accounting. 

Late last week the title company informed my realtor and I that the seller has a second lien on the house, and if unresolved, will not be able to sell it.The contract we used mentions a return of only earnest money if the title is not cleared.

@Mary Ann CaseyYou could put it all under 1 Umbrella Policy, but I think you would be violating the IRA rules with commingling your personal finances with your IRA...but I am no IRA expert.The maximum # of Umbrella policies would be 2.  1 covering all of the assets in the IRA Second going over your personal home and auto, along with all of the rentals.

Second is time; I have made the decision to work for myself full time and will put all my energy toward any deal I work on.  

I've heard I could take a second mortgage on the property as security for myself?