More Properties or Increase Cash Flow?

[Eric Perez]

Hey BP. I’m looking for some insight on what folks would do in my situation.

I currently have (2) rental properties that cash flow positive every month after all expenses and savings (#1 $215 / mo , #2 $293 / mo) and am looking to possibly get another property at the end of the year or improve my cash flow on one of the above properties. Property #1 mortgage pay off is $132k, property #2 mortgage pay off is $117k

I have enough cash to put down 25% on up to  a $285k property  or I can use that cash to help pay down one of the above mortgages and refinance into a lower payment which would yield more cash flow. 

What would you do and why? Thanks!!