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? 

Hi @Evan Coopersmith, I'm an investor and licensed mortgage broker here in Chicago (Oak Park).

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.

We'll also help determine the ARV without an appraisal.I'm an investor and also a licensed mortgage broker. 

As far as purchase price - I find older homes you can get a much better price on and rehab and still be slightly under market value - and the rent will support the mortgage and expenses.

I started my career as a commercial banker a long time ago, but have been an independent mortgage broker for nearly a decade.

I have a great Mortgage Lender tailored to Investments I can recommend for you here in Houston if you want to PM me! 

(I have $80K left on mortgage)My newest property, I bought this year for $125K, I put $60K into it but with a HML, so cash out of pocket was about $20K, I just refinanced it and am putting up for rent for $1800, my PITI is $1600.