@texasnewf your numbers are great, although the interest rate is a little high and you don't include your maintenance reserve costs, but overall congrats on creating such a quality rental. You should be looking at cash flow and overall return on your equity. Why? Owning a SFH rental carries higher investment risks (concentration, liquidity, legal, etc.) so you need to make sure that you're making higher returns on equity than lower risk alternatives.
If you paid off the mortgage, your equity would be $164,000 with returns around $14,900/yr from cash flow and 2.5% appreciation -- 9% return on equity. That's actually pretty high, so I would consider it.
The tax impact is small in this case. Assuming you're in the 24% bracket and a resident of TX, the $1,985 in interest deduction saves you $476 per year in income taxes.
If this were me, at age 33 and a growth appetite, I would refi and buy another rental. But layoff risk is very real and if having this rental paid off lets you sleep better at night, go ahead and pay it off!
