If it is a normal 70/30 leveraged property, you may end up subject to tax on 70% of your returns anyways - so cost benefit, is that 30% tax free portion worth the high tax rates paid and additional filing fees to get tax free treatment on the 30%?

Monthly Rent + Monthly Debt Payments <= GROSS Monthly Income * 45%This accounts for some people who have outsized obligations such as car payments, child support, credit cards, student loans etc.

When the value goes up, the tax appraisals go up. 

I recommend connecting with an investor-friendly lender that can give you an idea of what you will be able to afford based on your DTI, credit score, and current income & assets.

There are a lot of variables involved here.Min down payment requirement to meet min DSCR would most likely be 25%Whats your estimated credit score?

I know the due on sale clause is unlikely to be called by the bank, but don't want to sell with even a small mortgage balance left.Seller finance is to lessen the cap gain/depr recap tax hit.

I do buy and hold single families for cash flow and tax benefits.

I have been looking at factors that affect where I would like to live (weather, politics, taxes, night life, etc.) but I am guessing that these don't necessarily indicate a good financial investment.

They used a combination of the rental income, my W2 income and my credit to qualify.  

If you're doing it for taxes, call an Real Estate INVESTOR friendly CPA.You could also look at a refi with a smaller bank or credit union.