I would also recommend something like Acorns which is a Round Up investment vehicle where you link your debit card to the account and every time you make a purchase like $3.49 for a coffee the round up to the nearest dollar amount, $0.51 gets deposited in an investment account.

Subtract what you currently owe from the loan amount so for an investment property 97,500 - 85000 = 12,500 and for a primary residence 104,000- 85000 = 19000 and then subtract closing costs/prepaid expenses from that. 

Pay off your debt, but find out why you have this debit. 

Prepaids$1,651Homeowner's Insurance Premium (12 months)$1,200Mortgage Insurance Premium (months)Prepaid Interest ($15.0462 per day for 30 days @3.625 %)$451Property Taxes (months) G.

You could take out a loan up to 75% of the value of the investment property so .75 x 200,000 = 150K loan amount - 110K to pay off old loan - 7K for closing costs/prepaids/points = 33K cash back to you.

BTW - Our debit to income ratio and credit scores are excellent. 

It is easier to compare closing costs when pre-paids are ignored. 

@Rachel OdumuYour estimated closing costs are mostly variable because they include items such as lender fees (origination, processing, underwriting), title fees, attorney fees, recording fees, prepaid property taxes, prepaid interest, prepaid home insurance, etc.

So closing costs all in (outside of prepaids) on a $40k net cash out to me loan would have to be below $2800. 

Am I legally allowed to ask for the entire seven months rent to be pre-paid in a lump sum?