Have cash and equity, what to do?

[Brandon Hopkins]

Hey all! I currently own a condo and a SFR out of state. Both were purchased last year as investments. I paid cash for the condo and put 20% down on the SFR.

I want to increase the number of properties I own in order to increase cash flow.

Condo (local) - Paid - worth about $70k

SFR (out of state) - Owe $28k - worth about $40-50k rents for $625/month.

What is the best way to buy a couple more SFR's out of state?

1. 1. Line of credit, maybe unsecured?
2. 2. Sell the condo, use that as 20% down for 2+ rentals.
3. 3. Save and buy one as I have the down payment.
4. 4. BRRRR - Main problem is that I'm far away and don't really want a big rehab where I can't be there to hire/step in.

Suggestions? Am I missing a good option? Thanks in advance for your thoughts!

[Brent Coombs]

@Brandon Hopkins, what was your strategy regarding the Condo? (Condos are notoriously difficult to consistently make money from as pure investments - largely because of the high service costs, and values being highly affected by the roller coaster economy). So, would I rather have a Condo valued at $70k, or $70k cash? Yes, you guessed right. I recommend your option 2, which will allow you to quickly get into option 4. 

Nothing stopping you from also doing Option 3 at the same time? Don't forget, you are trying to pay LESS for Real Estate than it is ALREADY worth! Cheers...