If my math is correct,1250 revenue(333) mortgage interest(630) depreciation---------------------------287 <--- what you're calling taxable incomeWhere is the insurance expense, the property taxes, management fees, repairs/maintenance, advertising, etc? 

But when I worked out my numbers, I think I had to many questions on whether or not I was understanding the strategy correctly and doing the math properly to jump on it so quickly.  

The point @Alexander Felice makes regarding risk being a math problem resonates with me.

Most of it is simple math, Income vs.

So my math in calculating the actual cash flow of the property can be very different than that of the seller. 

Also, look into seasoning timing lenders are requiring for your refi (usually 6 months).Do math.

Hi all,Was hoping to get perspectives / hear stories on how others approached the possibility of selling RE assets and using the proceeds to paydown debt on other properties.Here is what I see as potential +’s and -‘s:+ increase cash flow by removing mortgages (so more passive income)+ opportunity to sell underperforming assets- less assets under management (so less potential equity appreciation)- taxable gains (will not redeploy into RE as my sense is we are near the top of the market)- 30 year fixed mortgages in place at low 4-handle rates (based on simple bond math, the value of my liability is shrinking on a relative basis as rates rise)Other facts relevant to my situation:* RE is but just one asset in my portfolio (and I’m fine with that); cash flow and appreciation are great, but I’m looking at the asset class as more of a long term hedge against inflation * not looking to leave my day job and / or replace W-2 income entirely with passive income * don’t need the cash flows from RE; again, I see the asset as a levered inflation-hedging play

I would make the decision based on the math and protect for contingencies, i.e. make sure you have sufficient funds to complete the remodel (I like 2x to be safe) and have a plan if things get delayed or the market changes to make sure you don't get stuck with the higher rate for too long.

I’m currently in the paying off mortgages stage (from 10 down to 7 now) so I understand the good feelings that come with paying them off but I would just do the math on the total payment and total expenses/interest per year of each way and one should be obviously better.

So there's some math to know which option is better for you.I also put some questions below to ask your conventional lender as well but feel free to tag me and ask any other questions.