We're due a recession. 

Bought before the recession for 72K.

The principals of that company also made millions investing in the real estate market prior to the recession and have a host of experience there.

Some examples:If interest rates stay super low, dump the cash into the 5% property & refi at both a lower rate and lower balance, freeing up more cash flow.If the principle value of the investments tank but the dividends are safe (this is why I suggested utilities) you can still be seeing modest wealth growth.If an awesome deal comes along you can liquidate, if you've selected a diverse group of recession resistant stocks even a principle loss is unlikely to be crippling, allowing the liquidity you need to capitalize on an opportunity.I'm no stock pro, but I've been a subscriber to the motley fool income investor for several years now, I'd be happy to recommend some examples they are backing - or just subscribe yourself :)Oh and I just realized that my advice runs counter to common advice, which is the further from retirement the more you should think about ira investing.

I've been adding recessed lighting downstairs and opening up the floor plan.

It was a foreclosure and that area was hit hard not only due to the recession but also to the crackdown of illegal immigrants. 

I always thought a college town rental property was recession-proof. 

Real Estate values have increased in 3 of the past 5 recessions with 1991 and 2008 being the losers.  1991 was only down 1.9%6.

I started in 2009 at the peak of the  recession.

On top of that, he's been through something like 6 or 7 recessions where he might have seen the value of a lower minimum monthly payment over the lower rate: households have monthly budgets (not 15 year budgets...), the ones calling him for a fire sale listing back in '89 (S&L crisis) or '01 (dot com bubble) were the ones with the higher monthly payments, not the ones with the higher interest rate.