If the interest rate are close, then you should pay off the primary. 

YoY is up 3.5%.Rentals - Availability by MonthThe number of homes for rent decreased MoM, also bucking the seasonal trend.Rentals - Median Time to RentMedian time to rent increased in November to 30 days.

Phoenix has been a hot market for rentals recently, but consider how long-term trends, interest rates, or construction projects might impact demand.Here’s a quick story: A friend of mine bought a new-build in a suburban development a few years back.

Finally, what’s the rate of return for alternative investments? 

Yes  I think the best move here is to asses your total monthly debt and see if a cash out refi will help decrease the total interest and monthly debt obligation.

You may not be able to cash flow with the current interest rates, but when they drop, you will see it.

Any input on whether you know of rates likely to drop?

Most, if not all screening tools do not include a comprehensive rental screening with a renters prior rental rating like Mayistay. 

Highlighting features like “walking distance to top-rated schools” helped me attract renters even during slower months.Negotiate SmartlyWhile sticking to your legal rights is important, a pragmatic approach could save time and hassle.

Available terms, interest rates, overall goals should determine how much you want to finance on properties.