"I have line of credit worth $500,000 to keep this loan going I estimate I need $60,000 in cash of course divis will cover most of the interest would you say I am about to go broke?"
Going broke (i.e. in a net assets deficit situation) and the ability to service the loan obligations are not the same.
But, if there is a change in fortune of your dividend income stream to a level where the amounts are insufficient to cover your interest obligations, your bank may have the legal right to call in your loan, and because your are in a net asset deficit (i.e. your liabilities exceed the vakues of your assets), yes, you will go broke :-)
Alternatively, if your loan has a termination date, and if by that deadline you are unable to replay the loan, yes, you will most likely become broke :-)
It can well be a timing issue, i.e. you have to keep running to stay ahead of being declared broke, and in the mean time hoping that something miraculous happens and your fortune turns for the better :-) Thus, faith, hope, and luck might well play a vital role in that scenario.
