Pros and cons of real estare loan consolidation

[Miho Y.]

We have 2 cash flowing properties. We want to refinance. By consolidating (cashing out from one and pay off another), there is a significant saving monthly. However, this means one properly becomes free and clear. Has anyone taken this route? What are pros and cons of not consolidating. I’m thinking if we were to sell the free and clear property, we will be hit by super high capital gain tax... is this correct? What else?? My CPA says he can allocate the interest to the paid off property to write off. I’m not understanding this so much. Any insight would be highly appreciated. Thank you.