@Thomas S. this is not about m-2-m lease but about relationship with Tenants.I use 2-year lease and always get new Tenants before the old one is moving.However, if it's October to March moving, I need to decrease the rent to get well qualified tenant to replace. 

Specifics:Duplex, bought/rehabbed for $210K ($60K of our own money) We owe roughly $150K.ARV: $265KInterest rate on current loan: 4.875%Current Mortage/Taxes/Insurance: $1,100/moCurrent Rent: $1,200/mo each side ($2,400 gross/mo)Cashflow: $600/moWe have spoken with two credit unions (and will look into more) and here is what the numbers look like.Lender 1: Will lend 70% LTVClosing Costs (Not including an appraisal): $6,900Interest Rate: 5.75%New Mortgage/Taxes/Insurance: Roughly $1,450Cash Out Refi would be roughly $28,600New Cashflow: Roughly $250/moMoney into deal after refi: $31,400Lender 2: Will lend 75% LTVClosing Costs (Not including an appraisal): $7,000Interest Rate: 6.25%New Mortgage/Taxes/Insurance: Roughly $1,600Cash Out Refi would be roughly: $41,700New Cashflow: Roughly $100/moMoney into deal after refi: $18,250We don't necessarily need the refi money to do another deal or two this year but it would obviously help although it would decrease (I think) the amount of money lenders would be willing to give.Does it make sense to refi even though we won't get close to all of our money out of that first deal, have a much higher interest rate and decrease cashflow by over 50% or would it make sense to keep our money in that deal with the much better rate and not refinance?

We got a slight decrease in the original asking price, but the financials still made sense and we got it under contract.

New Listing (1944) Sold (542) Rented (169) Leased (2) Terminated (223) Expired (1847) Back On Market (250) Extended (456) Pending (684) Price Increase (200) Price Decrease (1789) Withdrawn (199) Better deals are on the way.

You will dramatically decrease your living expenses, enabling you to save money more rapidly than you would if you were renting, or bought a house in which you lived alone.4.

The more you know about each other now will likely decrease tensions in the future and cost both of you less money.

At least that way the interest payments (she just bought the home two years ago) would go down through decreased amortization...

I was surprised that such a small increase/decrease in rate made such a big difference.  

In addition to the above commentors, If this does become a serious issue, there is one advantage, housing prices will decrease as demand decreases (and therefore supply increases).

@Price KenneyYou want to connect with an accountant who is very familiar with taxation as it pertains to foreign investors.A couple things to consider.1) Depreciation calculated may be different if the ultimate owner is US or Foreign.2) Corporation tax rate decreases with the most recent tax reform made "blockers" more attractive.3) use of a blocker is favorable to many foreign investors as you are not required to file a US individual tax return and not required to disclose all other personal information to IRS.However, all the facts and circumstances should be addressed before preceding so please consult with a competent accountant.