Will the first property show as debt and hurt me from getting a second mortgage ?  

And finally do you account for the mortgage balance as a long term debt?

My debt ratio will be way too high to get another loan and I also know I will have to get a commercial loan because of the amount of units.

Many tenants know that insurance companies hand out easy settlement money even for frivolous cases, and it's all too easy for them to find some shyster lawyer to represent them...just ask me, as that also happened to me just last year.

Now that my second rental is filled I can take the next steps of reorganizing this debt. 

Keep in mind Debt service needs to be filled in meaning based off my calculations they lose money every year. 

you first need to determine if there enough equity to warrant all the effort.I suggest secured debt < 50% LTVHere's my format:PropertyEquityTitleInterest(s)OpportunityNo one dies without any heirs.

@Charlene M murrill It depends on your income, credit score, the source of your funds and what other debt you have.

We have agreed that the loan will generate a 5% interest rate, and my partner will have the sole discretion about when payments on the loan will be made, i.e. when the interest on that loan became more of a liability than the continued use of capital was an asset, he could choose to sacrifice the cash flow to pay off the debt.  

The potential gross income w/ market avg. rent is $2.2MM -  7% vacancy ($158k) - OE ($735K) -Debt Service ($1.2MM) = Net Cash Flow Stabilized ($331k).