I got the terms mixed with open mortgage (no penalty to pay off early, but higher interest rates) and closed (more typical mortgage with lower rates, but the penalties to pay off the mortgage)...that'll teach me not to post too early in the morning :)

Now I have two vacancies and lower rents than when we started. 

I’m also making the property my primary residence to lower upfront costs, effectively turning it into a house hack.With this setup of me now occupying a room and not including utilities. 

The rates aren't great, but it will lower our immediate out of pocket expenses over the next 5 years so I am happy with it.  

Thus, my taxes should be higher because of the income I generate.If I pay off the primary, I'll increase the amount I'm able to save monthly not having the mortgage, while also keeping the income generation lower on the rental because the mortgage remains open.Any thoughts would be appreciated! 

I believe the appreciation has been great over the past couple of years and prices are lower than in major areas like Miami metroplex or Charlotte.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

A colleague recently closed on a 12-unit property in San Antonio and shared that a 6.8% cap rate, combined with lower property taxes, made it a no-brainer.

Section 8  rates (and lower) will also give you a rough idea of what your market rent will be.Yours is an object lesson in the mistake of buying what you can afford up front rather than what is a good opportunity.People just starting out should only buy local, that they themselves can inspect and get a feel for.

With that said, choosing your bank based on customer service relationships and business credit products should be a priority. if you’re looking for a bank that offers great service and lower wire fees, I’d suggest starting with NFCU.