We currently have the below "bad debt" positions:Student loans - 50k (6%)Car loan - 29k (7.09%)2nd lien (current primary home) - 80k (6.08%)401k loan - 30k (9% - paid to yourself)401k loan - 20k (9.25% paid to yourself)Household income of 267k (not including bonus), roughly 100k cash currently and save around 6k a month not including yearly bonus's (33k + 14k = 47k net/yr) + 72k/yr (6k/mo x12) savings = 119k total net savings per year (rough estimate not including current rental)Should we pay off existing debt with the exception of our home loans (not including 2nd lien) or invest in a 250k townhome* that can rent anywhere from $2,000-$2,750/mo?

Im not sure which areas you were looking at in Idaho, but I'm very familiar with my service areas which include the entire panhandle and I'm happy to answer any questions if you want to dig deeper.

That’s where the refinance into permanent debt comes in.

Taking out debt for 2M is not something I can take lightly. are there any other possible options that I’m overlooking?

Fixed rate debt in an inflationary environment is a wonderful thing. 

For example, I have a connection in Dallas, TX who purchased multiple STRs in Miramar Beach, FL and claims to only be breaking even, which I found extremely difficult to believe because I also have a connection who owns a one bed, one bath condo in Destin, FL who made $78K in rental income, including the lodging tax and cleaning fees, and was still able to net approximately $35K in 2023.

Different investors swear by different criteria, whether it's IRR (and the closely related NPV), cash on cash, the debt coverage service ratio (DSCR), the CAP rate for a property, or some other metric.

When I run the numbers on potential investments in my “monthly debt column” I have; “monthly repair costs”.

Hard money lenders, and private institution lender/businesses will only loan 70% of arv including the rehab cost, with experience. 

Discussion has been around 4 month during initial lease up.I am not planning on going in all cash, but likely a 50/50 debt to equity.