Purchasing Second Porperty

[Chris Jordon]

Hey BP,

I'm looking for thoughts and opinions on how I should maneuver the next move in my real estate journey. I'm currently undecided on the best route that I should utilize to purchase property number two because there are so many appealing options. I purchased my first property (which was a HUD home) in 2015 for 135k and have been fortunate enough to benefit from rapid appreciation due to Nashville's hot market. After making some improvements, the home is now worth around 210k give or take and I don't know the strategy that would be most beneficial in expediting the growth of my portfolio.

Option A: Do a cash out re-fi and pull out the available equity (80%), rent the property, and use the available cash to finance the next. 

Option B: Sale the property to access the total profit gained and spread it across multiple acquisitions or a multifamily that required a more extensive rehab.

Option C: Do a 1031-exchange to purchase the second property (of significantly greater value) and do a cash of refi to provide the funds needed for repairs and/or additional property.

I would love to hear all thoughts on what option they feel is the best and why. Thanks for taking the time to read my post!