You could refinance (no taxes on debt) and use the funds to purchase another rental.

Another measure of risk is debt coverage ratio.

We had around $50,000 in hand so we decided to put $45,000 towards getting out of debt and set $5,000 aside for our next project.

They don't look at tax returns or debt to income ratio to qualify -- basically, good credit and whether the property is rentable/numbers make sense.Any thoughts, suggestions, criticisms would be greatly appreciated.TIA,Manuel

The site helps both new and experienced investors create an investing "roadmap," by creating different property portfolios and tracking the progress of each scenario as you purchase/sell properties, collect rental cash and pay off debt etc.. 

If the existing LLC has debts, or someone sues the company based activities that occurred prior to your ownership, the company is still liable.

@John Oyedele I personally do not think moving into a personal SFR is the route to go, especially if you plan on using cash out refinances because that is going to negatively affect your debt-to-income ratio and the personal home is a liability, not an asset.

This leaves you an NOI of around 40,000 which is a debt coverage ratio of 1.74.

@Jeff Quintanilla  you were blessed doubly because in the year you did the short sale the IRS had a moratorium on issuing 1099C for short sales and debt forgiveness.. this is the one instance were Uncle actually was thinking about the average American who found themselves in an upside down situation. things have bounced back I bought a rental in orchards at the peak 209k rented for 1k..

All my properties are free of any liens, debts, or mortgages...I need a line of credit or loan for $ 10,000.00....I have at least $200,000.00 equity ....