I understand that you're resetting the mortgage but you can always put more towards the principal if able to.

Here are the variables you'll need:ARV (After Repair Value)Estimated Repairs (add a 10% contingency)Estimated RentPurchase PriceEstimated PITI (Principal, Interest, Taxes, and Insurance) on the refinance sideIf you know these values and ensure that your all-in cost (purchase price plus repairs) is 75% or less of the ARV, and that your rent will cover PITI + vacancy + maintenance + property management, then it's a deal worth pursuing.The BRRRR model is a fantastic way to build a portfolio and is still very feasible—even in 2024.If you're interested in more info, feel free to shoot me a DM—we can connect, and I'd be happy to assist you.

How it works: The lender gets their principal plus a lump-sum return after the property is sold or refinanced.

Purpose & Use DSCR (Debt Service Coverage Ratio): Used by lenders to assess whether a property generates enough income to cover its debt payments (principal and interest).

Principal, interest, insurance, and taxes.

The leftover stays and reduces the principal balance.

So long as you plan to hold the asset for the next 5-7 years, the historical appreciation/principal paydown should be enough to cover costs of sale, should you need to exit.

Imagine your tenants paying 100% towards the principal owed for 5 years. 

However, you must declare it as your principal residence, live there for at least a year, and disclose rental income on your tax return.

I don't think you should pay it off, but you should be paying down the principal every month at scale, which you are probably doing if you planned on paying it off in 4 years.