What's my best option?

[Justin Ross]

Hey guys, love this community and would appreciate any perspective on what I can do to take my game to the next level. Here's what I currently have on my hands...

1 of 2 rental properties- I self manage

bought 2 years ago, fixed up in Denver, CO (DTC area)

nets $400 positive cash flow monthly

comps now selling for 225K 

125K left on mortgage at 3.88%

(cash on cash return is 14.5%)

2 of 2 properties- also self manage

bought 3 years ago, in Denver, CO (wash park area)

nets $700 positive cash flow monthly

comps now selling for 580K

280K left on mortgage at 3.63%

(my cash on cash return is 8.5%)

I have 40K cash in the bank to go after another rental, but due to the crazy market in Denver it'll be tough to find anything better than a 5-6% cash on cash return. So I'm toying with selling both places (or one) + cash and 1031 for a good multi family unit deal elsewhere in the U.S. (20+ units)... or keep both and borrow equity from each place since these are PRIME locations in Denver, CO and the fact that I nailed them at such low borrowing rates a few years back.

Tell me what you guys would do to grow you portfolio, with 400K in equity, and 40K cash. Open to any thoughts on how to maximize earning potential here!