The shorter the prepayment term has an impact on increasing the rate.4.

@Scott VaethIf you live in part of the home and rent out rooms, you might be able to keep the lower 4% owner-occupied rate.Instead of a long-term rental that barely covers half the mortgage, could you do a rent-by-the-room model or target traveling professionals to increase cash flow?

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There are some concerns around taxes and insurance to be mindful of, but the job market in major Texas cities is unreal.

It was a 50% of one months rent and a $100 increase in rent. 

Once you increase your real estate portfolio using these tax free money, part of the cash flow they generate is offset by the non cash deduction (ie depreciation) so you get the equivalent to the depreciation amount but don't pay taxes on it.

Quote from @Michael Daniel: @Jaycee Greene these are low income areas however there's a lil room for rent increase but not much. 

but let me know if i'm missing something That was the plan, and honestly my current mortgage is less than 1300/m so with the increase it is maybe double that, which I can deal with.

Can some of your concerns be mitigated (locally) through things like strong tenant vetting and property class selection?

Many business owners are deeply concerned with the future treatment of their employees, equipment, image, customers, etc.