My wife and I live in a Seattle in a neighborhood that allows for free standing studio and apartment rentals.  Our home has both a 3 car parking pad AND a completely separate oversized 2 car garage (~600 square feet)....

And, don’t forget, all of the interest is deductible, something you don’t have with an all cash, 100% owned property.

All your improvements and repairs get deducted from your sales price on the back end.

For personal job loss you should consider “Key Man” insurance.It is very affordable and a business deduction when purchased by your entity.

@Levi T.

Are you saying that paying off these loans might end up costing more, since I will be hit with taxes that I am not paying now due to interest deductions?

You can of course lower coverage, get a higher deductible, get actual cash value instead of replacement cost (not advisable) to lower your premium, but the numbers don't jump out as if something was wrong.The gas bill for heating hot water and heat in winter is also not a crazy number, I think anywhere from 4k-5k/year if managed properly and gas prices stay at current levels. 

And because I did not have the property placed in service (ready to rent), I missed out on a few years of deducting depreciation on my taxes. 

I have ACV 110k, 5k deductible, @ $427/ year.

@Aaron Klatt thanks for the response. wouldn't there be a sizable deduction for the C-Corps tax basis (because they have that large operating expense being  the lease that C-Corp pays me as an individual)?