If you are using your own cash to do the faster paydown, you are actually decreasing your IRR...and your cash flow...and, your cost.

Look at the difference in cash flow, realizing that as you decrease your CF, you are increasing your cost. 

Permits also decreased during the same time period by 10.8%.

While analysts fretted over the high rate of inflation in the U.S. economy, mortgage rates once again decreased.

With changes around .25% each time, it's usually only a $25- $50 change in payment, decreasing over the past 1-2 years now.

A simple example for single family residentialBuy house for $400k with 20% down (80% LTV)Your down payment = $80kMortgage = $320kComplete renovations / upgrades... after reno/rehab/repair value (ARV) = $500kLender may offer 80% LTV on the new value, or mortgage of $400k  (although you are more likely to see decreased LTV on refi)You can then move your original $80K to a new property and carry a higher mortgage against the existing property.

Lenders make money off interest that they charge, but are willing to decrease your interest rate if you are willing to pay them some money upfront (the "points"). 

I have done a few flips in smaller communities that decide to flex their muscles with an outlander. 

If you purchased a property, significantly rehabbed the property and immediately sold it thereafter with the intent of flipping it, it will be subject to self-employment taxes.Regarding the taxes you will be subject toFederal TaxesState taxesDepending if it was a flip or not, also self-employment taxes.Speak with your accountant on the actual taxes that will be due as he/she will know what your marginal tax rates are.You can also factor in improvements / selling costs to decrease your gain / taxes.

It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).