For me, I could handle the increase in cost and still pay much less than If I got a 4/2 SF.

You’ll lose any property tax caps they may have enjoyed and be increased to the non-owner occupant tax. 

The increased cash flow would make such a substantial difference in your daily life that not paying it off would be foolish.Outside of that, I can't see many reasons I would take a 15% tax hit to save 4% on a mortgage, which is really only effectively about 3-3.5% depending on your tax bracket.

Boosting your score doesn’t take long, and there are services that can review your credit history and help you increase it within a couple of months. 

Their services increase the odds of tenants renewing and staying longer.Handling Evictions & Problem Tenants: A good PM handles problems quickly and efficiently.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

Often, they don't need to be moved in by the time of the appraisal, but if you have a signed lease, first month's rent receipt, and a receipt of the security deposit then the lender will often treat the property as occupied which can help increase your max loan amount in some cases.

The rentals are scarce and rents have increased in recent years.

Last year was back to earth; a glut of available properties drove the rates down for everyone and a drop in visitors also increased vacancies.

Hi @Robert B Azimi,A home that has been registered through The Mills Act, can be rented out the same as any other property, and it can even increase rental revenue as there are people who really like the thought of living in a historic house.