I'm Levi Wittenberg from Silt Colorado, passionate about real estate investing for the next 20 years.  

The only stickler to watch out for is if you aren't reinvesting the money back into your business (you would have to double check the tax law on what that curtails) the interest on that loan isn't tax deductible. 

These qualifications allow property owners to treat their rental income as non-passive, which opens up tax-saving opportunities such as deductions for business expenses, depreciation, and bonus depreciation.

I'm not a CPA but here is what I see as the pros / cons.PROSYou could potentially take more deductions as operating expenses. 

Yes, you can potentially use a bad debt deduction to offset your taxable income, which can indirectly reduce the impact of capital gains.

You pay them interest, which can be deductible at your rental level.

I do deduct for things that are on the move in checklist. 

The income from the property pays off the debt, while you get the tax deductions, equity build up and appreciation.As to why people pay cash, many don't know, like or understand other alternative investments. 

We had already been planning to do some maintenance and repairs (repave driveway, re-insulate attic, replace two broken faucets, other minor items), but were wondering if, for tax reasons, we are better off waiting until we close on the new home and this is no longer our primary.Can this work count toward tax deductions as preparatory work on rental property, even if it's currently our primary?

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.