If you refi, you’ll get $23K or $35K back (taking out closing costs), but you’re losing your cash flow to interest and closing costs.

I would hate to lose money filing and the tenant decides they’ll pay when they want.

What happens if you buy another property like that.. now you are in the hole $1000 a month.Sure your net worth would be higher in the end, but what happens if you lose your job, get injured sick etc... you now likely lose that property.  

I usually try to workout at least 4 times a week so this can save me about 4 hours a week in excess gym time.

You do not appear to want to take any risks in losing this tennat making the 3rd dog a fait du complies.I would only point out that there is something wrong with the info you have received from your tenant.

You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

This tenant could lose a contract and decide to break their lease. 

It's a psychological thing for most people that once they have a fish on the line (you) they don't want to lose you. 

We would save roughly 3-500 per month by dropping the MIP, but then lose a few years of paying off the mortgage.Thanks in advance for reading and maybe giving some advice!