That carries over to the economics of the deal and you'll see returns much lower than if you run them on a more efficient floorplan. 

The payment difference at the lower rate is $49 so it would take you 3.9 years before you see a breakeven point.

Are you utilizing any cost segregation studies/real estate professional status to lower the taxable income?

One of the reasons is the price points are so much lower than Napa or Sonoma.

The lower class buildings look higher cashflow on paper but real life it all nets out around the same.

If you have 20% equity, you may also be able to remove your mortgage insurance and lower your monthly payment in the process.

Take the lower of the 2 if it gets you the funds needed for the next deal. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Sometimes, the unsophisticated purchasers have to be taken by the hand by the listing agent and sometimes dragged across the finish line with a lot of services involved and typically a lower commission than a multifamily investment.

Bankers are not allowed to charge points on traditional loans so you save money in closing costs and end up with a lower rate.