the interest will decrease with time, but by then maybe capex will start kicking in, but first year/max 4000K/year-333$/month.The depreciation, if building is only 50 % - 151$/month, if 20% - 60$/month, with interest total 393-484$/month.Vacancy (10%) 125$/month, and capex 183 $ /month, total 308 $/month, which would leave 85-176 $/month for positive cash flow that isn't taxable,  not a lot and that number only goes down with time.

Please note that the tax increase for some owners is a tax DECREASE for others... this is only a re-evaluation and rebalance of taxing certain neighborhoods more and the others less depending on how they improved (or not) since the last re-evaluation...

Can you decrease your debt or live more cheaply if need be?  

Peace of mind from less debt.Pros for taking out the line of credit: We could capitalize on the SFH's equity (while still keeping it as a cash flowing rental- although the high monthly cash flow would decrease -  and avoid "parking our money" in the home's equity. 

As rents increase I'm sure crime will also decrease. 

One thing supporters of rent control here in Sacrament don’t seem to take into consideration is that rent control might not even work…https://www.mercurynews.com/2017/11/01/bad-news-for-tenants-bay-area-rents-are-still-rising-in-dozens-of-cites-across-the-region/https://sf.curbed.com/2017/11/3/16603900/rent-control-san-francisco-stanford-study-gentrificationQuote of the day: ““We find that six percent decrease in housing supply led to seven percent increase in rental prices.”

At the time the condo value decreased to about 160k and we decided at the time if we could just rent it out to cover the mortgage and fees, we could make some equity and sell it later even though we werent making cash flow on it.  

New York-Newark-Jersey City, New York-New Jersey-Pennsylvania Population decrease due to migration, 2010-2017: -21,503The NY MSA, a huge area, had a decrease between 2010 and 2017 of a whopping 21,503!!

The agreement also includes language that if tenants are unable to pay the decreased amount of rent between now and the end of the year, eviction proceedings and garnishment of wages for the full amount due will commence the following day.

I guess my other question is wouldn't cash flow potential increase over time as your mortgage cost (the interest payments) decrease and you can increase rent.