This will decrease my cashflow but increase my cash on cash return.

Wait until the market volatility decreases and things shake out?

plug in your payments and you will see how your interest decreases from early payment.

We would like to continue to buy notes and hold in our portfolio but we anticipate our capital to decrease in the next few years if we continue to purchase , so looking for sources to hypothecate our portfolio and borrow more capital.Any advice on this strategy and sources would be greatly be appreciated.

Financing is important and owning in the right city & location.Using a property manager can often increase your ROI, rather than decrease. 

@Bill Keast From the appraisal side it would make sense to include it, but when it comes to making offers when those values aren't included the true value of the property is greatly decreased. 

The available notes have decreased substantially. 

One quick and easy way to boost you scores is to decrease you debt to usage by increasing the limits on your credit cards.

At the same time, rents have increased due to the dollar value decreasing.

Sure, there are programs and sharks... but a good down payment will decrease total expenses over time and lead to higher (and faster) returns.Congrats and good luck!