- still no debt or are you considering a cash-out refi now or in the future?

The same if you are open to being an LP on a RE deal, or buying debt, or a laundromat, small business, etc.

Should I aggressively pay down the debt or let the tenants pay the debts off slowly over time?  

The question seems to be, "do I go into debt or downsize"?.

If we pick up this extra $24k, we can pay down variable debt or invest in other properties.However, this obviously is not good for cash flow.

So you end up with a new investment property free and clear of debt or you end up with tax free cash in your pocket and all remaining tax deferred into the new property.  

Leverage is great, and most people my age don't understand the art of good debt, or the fact that there is "good" debt.

Knowing that should either 1.) make you comfortable in adding additional leverage (i.e. more debt) or 2.) nervous because you don't think you'll be able to service that new debt.   

But if you can wait for your money and help a buyer buy it I can get a lot more people through the house on lease to own, and get a better price too ""There are many people that really good income in a good down payment but they can't get the mortgage because they don't have too much debt or debt to earnings ratio.""

But it may be the only way to get started, which was our case.Whether you do government agency debt or private debt, you can get non-recourse for these deals, but it is subject to "bad-boy" carveouts, which essentially mean that if you commit fraud, the loan becomes full recourse.