Such a situation is recoverable if there is enough time for a market recovery and the cash flow is at least break-even (or there is enough reserve cash to cover negative cash flow until it can turn positive). 

I bought all the courses that taught you how to do this with no cash of your own, trying to do simultaneous closings, double closings, finder fees and of course the infamous contract assignments.Those all work, but I always ran into credibility issues with even resi sellers.

You can even look for police reports in that neighborhood.

So it is fine for us to just list the property under my husbands name on the Schedule E even though we both own it, and I manage it?

That claim can not be even remotely true.  

@Jay Hinrichs exactly the risk is even more than traditional development and the profit is actually less with more operational headaches.

This could push your rent up to $7,500 or even $8,000, which would make your cash flow positive.In summary, the refinance could give you a good return in the long run, but the negative cash flow in the first few years is a concern.

If it were me, I would like consider refinancing only 1 of the 2 properties now and considering the second later in 2025 or even early 2026 when rates potentially soften.

Quote from @Ruben Diaz: Good evening team!

Hardly anyone can prep properly, mask or dropcloth properly, cut in around trim and windows, get even coverage, etc.