I don't see any advantage to be gained by your plan.   

@Chris Tracy @Michael Le @Omar KhanThank you guys for your valuable input.

Getting the beautiful house I wanted for a terrific deal, but more importantly, gaining the network of amazing people I met along the high-pressured way - my mortgage loan officer, closing attorney, agent, roofer, plumber, electrician, and very importantly, my AC installer.

There is a lot to be gained in this township and it requires good analytics of where you spend your money.

This reinforced a valuable lesson.

Hello Everyone! I am Michael with Alpha Services and I am feeling my way around the site prior to joining.   I am fairly new to this REI world that I have been exposed to and very excited.  I currently live in Henders...

I’m trying to crunch numbers to see what would be more valuable an investment over a 30 yr period.

In your scenario, you can write off 40k this year, put that against your cashflow and EQUITY, your operating at a paper loss. 15 year mortgage, your gaining equity at a fairly decent rate and your tenant is paying it!

I am aware of the tax disadvantages, irs 121 capital gains exclusion when selling.

What would you expect to gain by paying off someone else's property?