@Dana HarveyFannie Mae HomeStyle Renovation mortgage. 5% down.

Did the proper research, the only mortgage on the property was the the one that sent it to auction.

The 3rd lender is a "wholesale mortgage broker" and has given me a rate that is about .8%-1% better than the other 2 lenders.So my question is this.

If you have a lot of other debt aside from your mortgages then maybe it is too high, but cash flowing investment properties shouldn't hurt your ratios.

I own a few properties in the Hudson Valley, NY (Poughkeepsie, Fishkill area for those familiar - B&C areas):7-unit apartment: $500,000 equity - free & clear5-unit mixed use: $400,000 equity - 7 years left on a small mortgage held by prior ownerSingle family (my personal home): $375,000 equity - free & clearSingle family: $80k equity - 22 years left on mortgage, worth about $300kOther than my personal home, all properties are breaking even as rentals - not losing money, not making money. 

We are looking at properties and will be speaking with mortgage companies soon to start figuring out exactly how much capital we need on hand.

Ultra conservative investors buy with cash and pay down mortgages earning a return on their equity equilivant to the prevailing mortgage interest rates.

I thought pulling 100k in bank mortgage to use cash for other investments, pay them a percentage for the usage and would still have approximately 700$ monthly payment on 20yrs 5.5%.

For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.delinquencyFailure to make mortgage payments when mortgage payments are due.

Net taxable from rental real estate is generally excluded from UBTI under IRC Sec 512(b)(3).There is a wrinkle -- if the property is debt financed (i.e. mortgaged), the income may be taxable under Sec 514.