The thing you were not considering when you bought the new Odyssey is the depreciation. That vehicle is going to be worth 50% of what you paid for it in a few years and then you will be even more underwater on the loan. Every day that you keep the Odyssey you are losing money on depreciation, about double the amount you are paying in interest. The 5-yr depreciation on an 07 Odyssey is $12000! The interest is probably only about 1/3 of that over the 5-yr period!
In your situation, you need to stop thinking about interest rates and payments and start thinking about the debt as a whole, or even better your net worth as a whole. You cannot borrow your way out of debt, no matter how good the interest rate! If you sold the Odyssey and got $24000 for it, and bought a $5000 used minivan you would be in much better shape, even if you had to borrow from the HELOC to pay off the remainder of the vehicle loan. Because the used minivan won't depreciate much, you are saving the $12K in depreciation plus a chunk of interest over the 5 yr period. That $12K would pay for several transmission replacements! See where I am going with this? Most people justify a new car that they want by saying that the repair costs of an old vehicle make it worth it. But when you look at the numbers, it's just not the case.
Next, on the rental. You are losing money on this house every year. What makes you think that you are finished with the repairs and that you will not lose money again next year? This does not sound like a great investment for your kids college. You should consider selling it, taking the loss as a learning experience, and start a proper savings plan for college. Even if you put it in a simple savings account at least you are not losing money! It may take 2-3 more years before housing prices even start to rebound, and factoring in repairs, you may have continue to lose money all that time.
Honestly I think part of the problem is the accounting degree. I think you are being too smart for your own good in some cases, by using the numbers to justify purchases that really don't stand the light of day when you look at the big picture. I apologize if I am beating up on you, but I honestly think you need a complete change to your way of thinking if you are going to get out of this mess.
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