Mortgage pay off or loan pay down and refinance?

[Devon O'Donnell]

So I pose this question mostly because it’s the foundation of my long term plans but also because it’s not something I see discussed often. So here it is, is it better to use a large down payment and a short term like 10 or 15 years and pay off the mortgage then cash flow the majority of the rental income (minus the expenses) OR

Use a standard down payment of around 20 percent and taking out a full 30 year term and paying down the loan to then refinance and lower the payment to increase the cash flow on the property.

I’m asking mostly in terms of small multi family properties (duplex and triplex) but ultimately either could be applied.

I understand there are certain tax benefits when you keep a mortgage but would they outweigh the cash flow from the rent?