Refinance or 1031 - two family property?

[Ryan Corcoran]

Hi BP, 

Looking for some thoughts. I am debating on whether to either:

Refinance a two family property I own and pull out 20-30k and purchase another two, three, four family property

OR 

Sell and 1031 into a 6-12 unit property. 

The property is worth roughly 190k and I owe 110k. Anyone who has done or been in a similar spot and has advice I would love to hear your experience in either refi or 1031. 

Thanks,

Ryan

[Dave Foster]

@Ryan Corcoran, I think the two most important questions are "will it cash flow if you refi?"  And  "Is there any upside appreciation left in it at all?"

If it cash flows positive and there's any upside at all then maybe you keep, refi and get another.

If it doesn't cash flow but upside is huge (really really huge) then maybe you keep, refi, and subsidize the loss from the new property.

If it cash flows poorly with no upside or if it doesn't cash flow then sell and 1031. You'll free up more cash to purchase your next one and you can ensure that you get a positive NOI.