This would allow you to maximize tax deductions at ordinary tax rates.

@Tom HallAt 7% if you can I would pay it down as investing it net after tax gains may not get you the 7% you are paying - so it’s less riskDownside is you lose liquidity of that money as it’s tied in your propertyIf rates come down in future you can refinance and even take some of the cash out.Regarding your question are rates coming down, a lot of factors come into play but right now it does not appear there will be significant changes to rates over next 3-6 months.

After all I paid him my hard earned money...nope, he just drops you & doesn't let you continue. 

In reality this strategy still works, but we are having to leave more of our own money in the deal because prices are high and/or rent won’t justify maxing the cash out refinance because interest rate is high.

We do lower rates, and I'm curios if others have run into a "floor price" below which you just get problem guests.

Eva, trying to answer your questions here that you dropped in the thread.1.)  

@Dmitriy Fomichenko scratch the part about being taxed at the capital gains rate, you’re right that it is taxed at income levels, however the rest stands.

This was the standard procedure we had been following, and after the inspection there is a net14 payment that is, the payment will drop within two weeks if it passed inspection.

@Maynhia Stott  Baltimore has considered dropping to 12%.

The experience was really bad as I was getting 1-2 year old leads to cold call that I knew had a 0% success rate and I do much better generating leads organically on my own.