I️ am getting concerned because she doesn’t have any leases and each room is already occupied.

Have a question concerning a deal structure and vale of a fourplex I am looking at.

Direct mail and cold calling are our two main methods. 

So many of the variables in your analysis would be people and their opinions on value and where the market is going.As you mention, after tax cost is a concern as your rentals may be generating taxable income however your rent is not tax deductible. 

I had a feeling it was the 'right' decision to do so, but hearing it from multiple investors has helped clarify my confusion and concerns.

My concerns would potentially be reduced future purchasing power as a result of less cash flow along with the increased debt to my name.

@Matthew Paul,I understand the concern--I've heard similar from trusted confidants that I've shared my plans with.

The dirt basement and there being a dwelling down there is concerning, for sure.

Any borrower caught in the middle of this ebb and flow with the potential of closing a loan that is 40-basis points higher than when they signed the application is concerned.

I would, however, advise your aunt to refi, unless she's more concerned with paying down the balance on the mortgage for the next 8-22 years.