If it's worth $1.3 million today, it will be worth $3 million or more in 20 years, you'll have paid off the debt (or most of it), you'll earn at least $3 million in cash flow over those 20 years, and you'll have tax benefits.

It takes time with court meetings, etc as a debtor or creditor. 

so i had zero debt or interest payments on it while it was being fixed up. 

Liabilities are common among tax foreclosed properties and are often the reason the debtor or heirs are not paying the dues. 

When lenders calculate your DTI and your owned properties are breaking around even or a little cash positive from rents, do they basically look at those as no debt or even positive income to keep giving you more loans?

I also use business lines of credit from banks, but for this banks definitely want to see revenue (usually 5-10x the amount of a mine they will give you).It is important to remember though that just because these lines and CCs are not immediately reported on your personal credit report, if you miss payments or default you are personally liable and the debtors will add it to your personal credit report.

The note investor who thought the debtor had to pay for the full term of the note and couldn’t pay off the note early 5.

Dumb Debt also means that the owner takes on recourse debt and personally guarantees it instead of non-recourse debt or other people’s debt (OPD) or cross collateralizes it with highly appreciated assets with low debt to value ratios.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

The only reason to do a cashout refi is to replace expensive debt with cheaper debt or use the money to purchase more investments that make more money than the cashout refis debt service payments.