Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans.principalThe amount borrowed or remaining unpaid.

I am buying to rent out and wonder how this influence the rentability of the properties.

I really believe you need to pull yourself out of your dilemma with a job, hard work, and fiscal discipline.

I would unload, and a lot of people do.I personally feel I would be setting a piss poor example of fiscal economy for my children. 

(PS - don't forget the influence of the local Historical Commission, aka the Hysterical Commission)That said, renovations make the most sense when they are similar in the level of finishes to the homes around them.For example, Brockton (especially center-east) is an area that you would expect Kenmore or Frigidaire. 

You should also have your own sphere of influence, and find a niche to generate your own leads that match your personality type.

Ma & Pa investor don't know how to work the market (which has volatility, "flash crashes", hacks, hedge fund manipulation,) and plenty of outside influences outside of their control, that limit their growth.

Understanding market conditions is key, and getting to know the little things that have huge value influences, now if you have a cookie cutter home with plenty of sales it pretty easy, but if its an oddball with little market activity, it can be kind of a crap shoot, go with your gut and be conservative on the numbers, its way better to be off on the low side than way over valuing. good luck!

Now that my property  is worth more because it is shooting off more income (on larger multi-family and commercial, value is strongly related to NOI - hence, you can significantly effect capital appreciation with minimal broad market influence), I can further raise the IRR by cashing out a refi or selling for nice profit.

Only you can tell if this is a good deal, and if you don't know, I would suggest you pull back and better define your retirement goals, which will influence your investing goals, which will determine your buying criteria.