In other words, if one property requires a major repair, reserves from other properties can help cover the expense, reducing the need for each individual property to have a fully stocked reserve at all times.

At that point you can either add your own cash to the cash from the 1031 and reduce your new mortgages. 

6.125% has P&I of $2625/month.5.75% has a P&I of $2521/monthThis is a $104 benefit.Paying $4400 more towards principle will reduce your payment to $2598, a $27/month savings.Math says buying the rate down has a larger net benefit to you up front, but it will take you 42 months to break even.

Although it does reduce the premium slightly for that particular rating factor, it is not optional on the part of the HOA as an intentional cost saving measure.  

A $200,000 duplex might have identical rents in municipality “A” and municipality “B” but the property tax rates will vary, local regulations will dictate licensing requirements, labor rates will vary & the particular location will dictate insurance premiums since insurance carriers will weigh local replacement costs and whether the municipality is viewed as being a “plaintiff friendly” in arriving at insurance premiums.Better situated assets will attract better tenants/higher rents & reduced management expenses Tenants who reside in better situated housing and pay higher rents are more financially responsible meaning lower rate of rent loss and will generally take better care of the property.

I believe there maybe a few different ways to tap the equity in my 1st rental, but my concern is that if I take out the equity for a new purchase, I'll be reducing the cashflow of my business due to the additional debt repayment.

Use the $25,000 towards reducing the home price, which would decrease my yearly property taxes.2.

., the property) against claims which would reduce the value of their collateral.

House hacking (buying a multi-family property and renting out units while living in one) allows you to cover or reduce your living expenses while building equity.

It also is Tax free and cannot be closed or reduced once its in your account.