Discount points on refi for (future) rental property?

[Tim Joyce]

If my intent is to convert our current home to rental when we upgrade and hold indefinitely (i.e., long past the break even date), is there any reason I wouldn’t want to consider purchasing discount points from the refi lender? On paper it seems like a can’t lose, if we assume the property will be cash flowing on day one. Wanna help me pick apart the logic? (For the time being, lets ignore the opportunity cost of burying 8-10K for purchasing the discount during refi instead of investing elsewhere. Let’s also assume adequate cash reserves on hand for personal and business emergency.)