Arizona, 70k cash, what should I do???

[Joe Vettorel]

I own a property worth 98k. I took a 70k mortgage out on it. I currently rent it out for 550 a month. I have the 70k in cash ready to invest in another property. My interest rate is 5% paying 440 a month so I'm pretty much breaking even. What should I do?  I originally refinanced to afford house I'm in now, but have got caught up. Should I pay off loan or look for a by and hold? All the properties I've analyzed puts me below the $500 cash on cash is it worth keeping the loan ? Unsure of route to take. 

[Shawn Ackerman]

I'll send you my banking routing number and acct number lol!! What I would do with 70K is find a lender either conventional or commercial that will finance 85% on SFR's or 20% on a 2,3 or 4 units and leverage 50K of that into 200-250K in financing. buy a couple or few right then Refi those and your off to the races with 20 K tucked away for a rainy day fund and hopefully a good amount from the 200-250K Refi, Then use the Refi $$ to purchase more property.

You must treat money like a slave, work it hard 24/7, then work it's children even harder, then it's children's children.  Enslave your money or it will enslave you in the form of mortgage payments and other expenses and debt obligations.  Just my outlook on things.

I would also look in another market, doesn't seem like you can achieve what I mentioned above if your stay were the current property is.  You will most likely have to branch out and develop a boots on the ground team elsewhere.  Good Luck!!!