What to do with 50K and 200K in equity

[Sunil Kapoor]

Hi Everyone,

I just joined Biggerpockets and find the information here so useful!  

Just to introduce myself, I am living overseas but own 3 single family homes in inland California that have appreciated in value by over 200K since I purchased them.  My strategy then was buying for appreciation and not cash flow.  As of today, the combined 3 have a total cash flow of around $400/month combined (including accounting for repairs/vacancies/etc).    All 3 are on 30 year mortgages with 4-4.5% interest.

I'd like to switch to a buying for cash-flow strategy, but I cannot see any opportunities in the California market.  I do have some family in Arizona (Phoenix/Tucson area) and might start looking for potential deals there.   

I have about 50K to invest and over 200K in equity in my rentals.   I'm considering the following:

1) Pay off one house completely, which by my calculation is a 10% cash on cash return on my investment.

2) Buy a rental in SoCal or a market like Arizona, which may not have great cash flow

3) Hold my money until a future market downturn

4) Enter a property market outside my region and buy a property there

What ideas do you have?  Any better options?

Thanks!!