So far it's been working great...covers my monthly nut so basically living for free.Right now I have about $360k left at 4.3%I have about $170k in cashWas thinking to use some of the cash to either invest or perhaps pay down some of the mortgageBut...this sweet house for $650k came on the market - it also has a main living area and a carport that can be rented out for $1500/mo or so.So I'm thinking if I deploy 20% into that I can live in the 2nd house and the cashflow from the other house + side rental should cover it all.Do you think this is a good idea or given how hot the market it is would it be safer to just pay down the first mortgage first?

@Dave Bopp - at that point they would be considered a holdover tenant and your lease should cover that. 

Some lenders may offer to cover closing costs in return for a higher interest rate.

In her book she said if a investor put a deed in a land trust to cover up the due on sale clause, this action could be consider a mortgage fraud; because if a court rules that the intent was to keep the bank from exercising its legitimate rights by hiding an important fact (deed transfer), I can be accuse of mortgage fraud.

Second, in the contract is there wording about them marking up the repairs to cover their time? 

Evaluate your current lease and make sure you covered for these frivolous costs in the future

At most there would be some additional utilities and cleaning expenses, but that *should* be easily covered by the airbnb price based on my research of homes in my neighborhood on airbnb.

But if you are looking to hold it long term and just cover your mortgage there are still some good locations to buy in that will likely appreciate well. 

Hello, I am looking for a good rental home insurance agent in the midwest who covers Alabama, Tennessee, and Indiana.

That will make the cash flow on the refi property negative $165 but the cash flow on the new property covers that.