@Richa Wardhan every investor has to find their own answer to your basic question - focus on portfolio growth or paying off what you have.Portfolio Growth leverages your money using loans and tenants paying off these loans.

.), I'd recommend that the residential units fully cash flow the loan as my experience is that mixed use properties are tougher to finance as most lenders tend to prefer one or the other and something in the middle gets more difficult.For example, and granted I don't know anything about the area/neighborhood, I would expect this property (https://www.realtor.com/realestateandhomes-detail/111-NW-Har...) to be easier to finance than the mixed-use property you mentioned. 

If you do not have your own cash, you are borrowing money from someoneone some how whether its a loan or equity.

I would say maybe look into a 203k HOA loan great loans for people our age. you would be able to do a value add and not pay your mortgage until the updates are done up to 1 year.

Loan terms seem reasonable.

It sounds like the issue is with the Debt Service Coverage Ratio (DSCR), which lenders often use to determine how much they’re willing to loan.

@Timothy Parish Yes, you should have take out 401k loan vs what you did.

His reason was the only thing he knew to do with the proceeds was to loan it back out at 12%, and he would be "behind" where he is now in cashflow.His proceeds would have given him options up to and including PE, but he is a simple man and in his case holding was the option for now. 

It could be some sort of skill set for renovations, design for furnished rentals, specific market knowledge, owner occupied loan products for a house hack, etc. 

with an FHA loan How did you add value to the deal?