My sister and I were fortunate enough to inherit 2 properties from my father, one a suite of apartments and cottages worth about ~$3M and also his home.
We currently have about $200K in mortgage debt in the apartments set to be paid off in about 6 years; the property has appreciated probably about 20% in the few years that we've owned it.
We're planning to refinance the mortgages but are trying to figure out how much, if any, additional debt we should take on. The banker working with us has suggested about $1.6M total debt over 15 years, and although it would be nice to write of the mortgage interest and put that money into the market, the properties are also appreciating and that seems like a large proportion of the total value of the property to convert into debt.
What is the general rule of thumb on this kind of thing?