Quote from @Tim Johnson: Has anyone seen an example of a lender combining debt with equity on a real estate deal?

I always tell my clients to put a reminder on their phone to go off monthly to ensure they pay off all debts like this that can cause them to have higher credit scores. 

Thus, your profit margin is lower (than the all-cash offer), but your ROI is higher.Putting more than 20% down might reduce your monthly payment and debt-to-income ratio, but it also ties up more of your capital, limiting flexibility.

Same guy handled a triplex rehab (the one with the theft), and that's where he took money that he simply pocketed or used in some sort of Ponzo scheme to pay off other debts (I have no way to know, but the money did not go to contractors or to continue work at the site).

You will be able to take advantage of it in a SDIRA if the syndication also has taken on debt and therefore passes UDFI on to your account. 

As a generic advice:  I would recommend paying off any credit card debt, or high loans. 

It really comes down to your comfort level with debt and your long-term strategy.

If you don't have a good foundation(bad debt paid off, $$ saved up) I would first focus on that.

I think paying off a loan with a high interest rate debt and adding to the principal is one way to stay liquid within the property. 

Ideally completing light renovations like this shouldn't take long and you should  have a low holding cost on the hard money loan (if you used debt) and make a higher profit on the sale or have more flexibility on the payoff when you refinance  Plan on long-term and hold.