Someone came in and bought it out from under us, and at a pretty reduced price that we could have done.  

If it would not cover both payments I would take the 30 year mortgage to get cheaper payments and just try to pay it off early by making additional payments to reduce the principle by them if I did not have to come out of my pocket to do so.  

My initial interpretation was that i could reduce my non qualified use by 2 full years, and you could reduce yours by 5 years but my second reading of more detailed IRS explanation calls into question my interpretation if you go beyond the 2 or 5 year boundries.  

orOption 2:  Collect it with other excess CF, and spend it to reduce the cost (increase CF) of the leveraged money on a future property?

Are there other loan options beyond a 30 year conventional mortgage I'm not thinking of that may be able to reduce down payment from the typical 20-25% amount?

The price is at 1.7M still (hoping I can get it reduced to 1.65M.)  

There are two ways your PMI gets reduced:1) you pay down the mortgage to 80% of Initial purchase price/appraisal2) When basing PMI on removal of a Current appraisal; you have to get to 75% within the first 5 years, 80% after 5 years.Standard Fannie guidelines.

While you can reduce your CapEx as your still only saving for one roof, keep in mind you have multiple appliances, heating/cooling units, etc.

Here's my question:Would your refinance the loan to a 30 year and reduce payment (estimated at $450 a month), increasing the income to around $1,450/m or would you take out the equity and buy additional properties?

For newer ECM motors, blocking vents can increase static pressure in the system which means the unit's blower must work harder to continually provide conditioned air to the home, thereby reducing the efficiency (and more likely, longevity) of the unit.