My credit is currently tied up with student loan debt.  

. $1,000,000 in mortgage debt * 6% = $60,000 = $100k in 401k/IRA * 60%.For everyone else, it matters how many financed properties you have. $400k in debt across five properties will have higher reserve requirements than $700k in debt across four properties. 

For instance, when someone defaults on a federal tax debt, the IRS may file a lien on the defaulted amount.

I have run into this w/ Equity Trust.Here are 2 examples, a debt and equity investment in your Norris Lake project.Friend's SD entity (IRA, Roth, 401k ) lends Allison Construction (you) funds to build a homeYou pay them a mutually agreed rate on a mutually agreed schedule,they earn interest in SD entity.

I'd be curious to hear the response from others, but I'd say 3 months of all expenses and debt service would be a good place to start. 

My favorite book on real estate is "the millionaire real estate investor" by Gary Keller.Eschew consumer and student loan debt as if your life depends on it....because your financial life quite literally does.

They were in debt with their bank with about two years of non payments.

In a worst case, they can foreclose on other property you own to satisfy this debt though it rarely happens.

for me, my ex had been spending like mad, the good side of this for me was, though I was left with a lot of debt, this made it easy for me to buy her out on a lot of things.

Plus they also look at debt to income ratio.