In many markets section 8 is higher than market rate. and investors need that extra return to mitigate the risk of sec 8 tenants generally speaking.

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

The interest rate is not special nor is the 20% down (80% LTV).  

If trump hadn’t won you’d be forced to sell this year, but hopes are high he will extend his lower tax rates. 

million in addition to their investors (who expect a reasonable rate of return) by keeping the rental rates at a fraction of the market rate?

Good luck Not long ago you would do a true brrrr get all your money out and have a property with strong cashflow (low rates) for “free”. 

Last year, I purchased a SFH under market at 7.65% interest rate and did some rehab to up the value.

Currently we would be at 8.5% interest rate.  

Here are the pros as i see it: easy (no purchase necessary, you know the property), likely prop 13 property tax discount, possibly below current rate loan.  

@Chinku Chinku the rich get rich by making their money work for them.They borrow at one rate, to invest in something that returns a higher rate - they profit on the difference.Only you can evaluate your risk tolerence though.