U live a lifestyle not a job huge difference..

It attracts a different guest.  

I work with a lot of investors with similar questions and they all have their own CPA's and most times they come up with different answers. 

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

This is a pretty critical difference.

Your tenant is a a-whole, which is something entirely different.2.

The construction differences to convert it into a separate unit (vs leaving it as a duplex down) would be beefing up a planned kitchenette and also building a wall to separate the basement, while giving it and the 1st floor access to shared laundry room.To do this, we need to cash out refinance, (something we have to do soon anyway as we are on a 5 year balloon).

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

I also think of property locations and property conditions having different classifications. 

The increased cash flow would make such a substantial difference in your daily life that not paying it off would be foolish.Outside of that, I can't see many reasons I would take a 15% tax hit to save 4% on a mortgage, which is really only effectively about 3-3.5% depending on your tax bracket.