In addition, somebody else is paying off your mortgage and the property can be a good tax write-off (consult with a professional).

Readers should seek professional advice.

Find RE professionals in those markets.

Networking in various real estate associations to develop DEEP relationships is part of this program.2.

@Philip Jones we've helped our clients do over a hundred.As some of the lenders posting have pointed out, the challenges are:1) Property value and corresponding loan size2) Appraisals have much better comparables than 5 years ago, but may still be an issue.3) Property condition can be an issue via the appraisal4) Ownership seasoning - most lenders looking for 6+ months or incredible documentation for cost of improvements made.5) Most DSR lenders require professional property management.Always try a small local bank or credit union, but most will expect you to transfer your business bank accounts over to them. 

For example, they lost a fairly major battle when they tried to argue that only licensed professional can manage short term rental properties. 

Consult with Experts: If you're uncertain, seek advice from a financial advisor or mortgage professional who can help you evaluate the specifics of your situation and give tailored recommendations.By following these steps, you can make a well-informed decision about whether refinancing while considering prepayment penalties is a good financial strategy for you.

Other than "talk to tax professional".

I have confirmed what @Garrett Brown shared -- my best option is an SBA disaster loan with a lower than normal interest rate to pay off our mortgage and then I can also hope for / pursue with others a land buyback program for those of us who have floodplain property that FEMA won't reinsure.

Based in San Diego, I’m looking to connect with local professionals, share insights, and learn from others in the community.