I also have 15 year mortgages on those two properties, so even if I "add" to my debt on some months, I am reducing principal and gaining equity substantially each month as well.

I closed on a little bungalow (1060sqft) in East of downtown end of September of 2016 Started the rehab in October and finished by end of November, against all odds and suggestions listed the property end of November (typically the market is slow in December, and to reduce DOM people tend to hold on to their properties till new year) and within first week of listing received a full offer on asking price and closed on the house on the second week of January.Lessons Learned:1.

The cash flow has been reduced a bit by the recent interest rate hikes, but it is still about 7% return .

In many deals (mine included) anything over the pref is a return OF capital and reduces the capital balance of the investor but NOT the % ownership. 

@Shiv Jey ask your agent to give you rebate to reduce loan principal.  

Installing multiple layers of shingles reduces the life of the shingles.

I know it's only been two months since the purchase, but the lovely and successful folks on this website have really fueled the fire in me to become creative!

Interest income does not reduce my SS benefits. 

You need to check your lease and relevant state statutes and case law on the matter but typically in a situation where the home is still habitable you would reduce tenants rent by the reduction in value of the property, which is likely substantial when going from 3br/2ba to 2br/1ba. 

Transfer ownership of the property into an LLC (or some other legal structure) to reduce my personal liability2.