@Jacob Pischer Ultimately up to you, but my approach has been to use cash to produce more cash...if you can generate a revenue stream that covers your debt service (payments on your debt), you are basically neutral....and if the asset continues to perform after debt is paid off, you are cash-flow positive....The only reason to use cash to pay off debt is to free up or improve your credit or DTI so you can leverage bank or other money to acquire an income producing asset.I'm sure others have differing opinions.

We are planning to paint the paneling to a nice neutral color to upgrade the look of the room. 

Austin duplexes on MLS are generally cash flow neutral or negative with ~20% down. 3.

Also, Colorado folks, any ideas on whether a pot dispensary is good, bad or neutral in terms of property values?

Generally speaking, a pass-through entity LLC or corp is tax neutral.  

But it does not matter how hard you try to convince someone that all the holes will be patched, the sawdust will be swept up, and that lavender bedroom is going to be the same neutral color as the rest of the house.

Even without it, you're likely to be cash neutral or negative, on a property that will appreciate slower than a real house in the same area. 

As a general rule, an LLC is tax neutral.  

It is net neutral to your net worth (aside from HELOC fees).  

Getting hit by annual tax increases can quickly turn that cash flowing property into a cash neutral or cash negative property.