They originally wanted 360k, but the mortgage would have the property running negative for the foreseeable future until all renovations are done, which I won't do. 

I'm located north of Houston, Owned a Real Estate Mortgage company years ago.....

Would’ve paid for my mortgage easily, and I’m gone anyways!

Common deductible expenses include mortgage interest, property management fees, repairs, and even travel expenses related to property management.

I searched for homes based on the mortgage I could afford.

This is my first personal mortgage so I'm trying to learn the game.

I own a mortgage company and know PennyMac. 

It depends on what the terms of your mortgage are.Pros-with no mortgage, you have higher cash flow.Cons-if you plan on buying more properties, you are better off saving the money for a down payment for your next place.The big questions are: can you get higher than 7% return if you invest that money elsewhere? 

There are mortgage recast calculators online or you can reach out to your lender.P+I payment will go from 2155 to ~1800 given the numbers you provided.

The mortgage on this property is way above what I can rent to a family.