As Dave ramsey recommends of not taking on a house mortgage thats more than 25% of your monthly take home pay.

Go to your favorite search engine and look for "fake pay stub" and you'll see what I mean. 

Well in this new model you would essentially pay your investors 7% in the form of a debt service, therefore when you decide to do a cash out refinance you pay your lenders their 7% and you own all the equity in the property that you acquired.

Hi Michael,So there's negatively, neutrally, and positively leveraged debt.You don't want negatively leveraged debt because you need to bring money to the table each month to pay for the bill.Positively leveraged debt throws off cash each month.

The borrower is not personally liable for the loan, and the lender cannot seek additional repayment beyond the collateral.Since the borrower is not personally liable, they can choose to make larger or additional payments to pay down the loan faster if they wish.

For example, one bad tenant stops paying rent in January.

Paying off my house and increasing my heloc to invest in other properties?

Can I use Solo 401(k) as source of funds to pay 25% down and leverage debt for remaining principal amount to purchase a duplex that I will owner occupy and rent the other unit?  

Right now you're earning 5.14% interest on your money, and you pay income taxes on every bit of that $1800 per year.Meanwhile, I won't even consider a rental property unless it pays me at least 10% cash-on-cash return and a minimum of $250+ in monthly cash flow.

You can see the law firm who represented us and the price we pay the attorney.