It'll be confusing in the short term, I think people assume it's inflationary.

You can't actually pay it off directly because they've been securitized, and the people who invested in those securities did so because of the specific certainty of the payment schedule.What you do in a defeasance is use the proceeds of the sale or the funds from your new lender to purchase treasury bonds that are packaged to make the exact payment amounts and timings on the remaining term of the loan, and then assign those bonds to your old lender.

Another possibility I looked into is simply leave the current SFH as is since we have long term tenant, but build ADUs on the lot.

I reduced rent by 100 $ last week as well from zillow Zestimate rentI spoke to other new property manager whom I am thinking to switch for long time.

I have one long term partnership that we share capital but I still do all the work ( rain maker) he is a cpa so he does do the books and tax return though :)  WE built one subdivision together were he put in 500k and I made him 1.2 mil in 18 months net profit so that was not bad.

@Carlos Ptriawan to add to what you’re saying, if an investor has a mix of properties (great ones and lesser ones) and they are looking to streamline, they could sell the less desirable ones, pay the gain taxes, and use the proceeds to pay down/off the loans on the most desirable properties they want to keep long term.

@Austin Green we currently live in Franklin (short term)!

This tied up the property in a legal battle between the seller, buyer, and lender for a long time and cost the seller $200-$250K in damages.

Quote from @Peter Firehock: Introduction:Well you've certainly put together a long and comprehensive analysis.   

Find someone who manages long-term rentals in that area.