Opportunity value on equity is reducing your rental income by $1700 and $1300.You need to either sell or at the very least pull out the equity to reinvest.

Know your market, buy right, rehab right, have the right Property Management, have the right tenant, reduce vacancy/turn over.

This will reduce your taxable W2 income (401(k) contributions offset your taxable income) and you are paying yourself the interest on the loan while preserving the ability to build up your retirement funds.

If it takes you a while, you know that many others won't be taking the time/energy to do it!  

Some folks may say writing off little stuff is a waste of time, I see it as for everything I can deduct it reduces the profit side where you have to pay taxes on it.

On my new Schedule E I set up a new depreciation schedule reducing the Basis calculated above by the proportion of depreciation given by the DST.Help please.  

The time, energy and money investors spend looking can out weigh any discount.

However, If you'd run a bunch of AUS scenarios for folks with that many financed properties, you'd know that Fannie in 99.99999999999999999999% of cases reduces LTV by 5%, which in your scenario would put it at 70%.

If they purchase, the option fee amount paid will be reduced from the purchase price to lower the purchase price on the sales agreement, after they exercise their option to purchase.* The property is not sold and title is not transferred until the tenant exercises the option to buy.

Busy roads and schools, etc don't reduce your rent like it would reduce your sales price.