Should I sell, leverage or continue to rent paid off properties?

[Priscilla Davenport]

I own 4 paid off properties, a paid off primary residence and one rental with a 50 grand balance. The appraisal on all properties is a little over 500 grand. Ive bought mostly 30-50 grand properties in cash but paid my primary of in 15 years. I would like to retire from my govt job in about 2-3 years. My properties gross about 4,000 monthly and I expect half of that after expenses to supplement my pension and small 401K. Ive been getting advice to leverage properties to buy more to help further my retirement plans with more additional cash flow. Is this something to consider just before retirement? Or should I just stay the course Im on with paid off properties and retire as planned?

[Rick P.]

I would advise leveraging slightly. Why not get a mortgage at 50% of appraised value? It allows current properties to still cash flow and lets you hold $200,000 right now. You can sit back and wait for a good opportunity to come along in real estate or maybe a stock market correction down the road. I like the optionality of cash in your position more than I like the additional cash flow each month. If the right deal(s) arise you can pounce on them.