This means a deep dive into your Internal Rate of Return ((IRR). 

While very lucrative - if you don't have enough reserves, it can really break the bank. 

Talk to your insurance carrier to make sure you have the right policy (may need to switch from regular homeowners to landlord policy) and look into an umbrella insurance policy.

Let’s break it down:Loan: $300,000Base Rate: 8% (P&I: $2,201)Buydown: 1 point ($3,000) lowers rate to 7.75% (P&I: $2,145)Monthly Savings: $56Break-even: ~54 monthsHolding long-term?

Hi Melanie, I both own and manage in the area and to be honest, the market in Kissimmee/Davenport is tough right now unless you're willing to invest a lot of capital into high end theming. 

RESOLVE this issue NOW and make a clean break. 

I would definitely reconsider buying into a property that will have a negative cash flow.

Then you might be well into the black in a few years. 

Both houses have detached garages and I have been considering turning the garages into 1 bedroom units. 

Or take the 40% hit now and put the $54K into a Roth IRA and do something similar.Best of luck!