I've seen a tenant calculate how much damage to the house she should cause because she was positive that she wasn't going to get her deposit back.  

The second position would be for a term not exceeding 5 years. 

I believe you have missed a crucial step here that possibly puts you in a bad position where it might not be possible to deny the wife accessDid either party give the 30 days notice required to terminate the existing lease?

I am looking to buy & hold rentals with positive cash flow. 

The large scale commercial development he does at Grey Street Partners certainly has a positive impact on San Antonio.  

The 40K property you use in your example will never produce $600 positive cash flow.

I just got lucky with appreciation.My wife and I are now focused on acquiring our first cash flow positive property.

Sounds like a lot of major repairs have been done over the years which is a huge positive.

If you did not include it in your original analysis it will be hard to cover to cost and maintain positive Cash Flow. 

I would only pay the mortgage off with excess cash flow that was not needed for the running of the asset.. if your making a few hundred a month positive whats that going to do for you mine as well pay it down so you don't just spend the money on dinner closes starbucks etc.