Best Strategy for My Paid Off Duplex

[Blake Chapman]

Hello everyone,

I own a duplex in California that is currently paid off. In its current condition it is worth 250k and needs a bit of work cosmetically, id say 40,000 in updates. I️ currently collect 1850 in rent and have both units rented out. 

I want to get into larger multi-family deals and have been thinking about refinancing the property and taking out 200k for updates and reinvestment into a larger deal. 

Thoughts on this? I’d eat up all my profit in rent in a mortgage but I’ll be able to add some great value and hopefully get a 18 unit or larger building with the leverage. 

Or should i just leave my paid off property alone?