They are so tax beneficial! 

Lower property taxes, affordable housing compared to LA (CA buyers are usually cash buyers because what they net from their smaller home in CA can get them a bigger home here, often covered by what they net from their CA sale), allergies (smog), and politics. 

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.

I was just reading Mark's book "The Tax & Legal Playbook" this morning and it specifically had a "critical warning" (page 31&32 in Chapter 3).

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

Whichever loan that you decide to use, the interest will be tax deductible due to interest tracing rules.

It links to our business bank account and our business credit card so come tax time, deductions should be easier.

Most of my renters are nurses, engineers, and tax payer funded employees (Government workers). 

Thanks for the tips this is great information.

With an 8% mortgage rate, they would pay more than $650k in interest.One major problem for both buyers and owners beyond mortgage rates is the rising cost of property tax and insurance.