What would be the next move...

[William Przybyla]

Hey Gang,

I have asked for advice to a lot different people (realtor, financial advisor, property manager, other investors in the area) about what I should do for my next move as I have read about a few different strategies on how others invest or continue to invest.

So a little background for me I have house hacked everything that I have. I started on Ohio State's campus and bought a duplex, which cashflows $800/month. I then got transferred to Dayton, OH and the Columbus property has worked out so well I bought a 4 unit/1 BR apartment building (I lived in one unit fixed it up and then rented that out and moved/fixed up another unit, until it was time for the next adventure). This cash flows $1000/month. I then bought another duplex, which I fixed up and paid off just this past year and that cash flows $1320/month. After living next to my tenants for 6 years I decided that I wasnted some privacy and purchased a SFH that needed some work close to University of Dayton's campus, with the thought that I will outgrow that property and I will move and put it up for rent.

The problem that I am currently running into and unsure what I should do next is the dreaded Debt to Income ratio. I work a good job and bring home 70K before taxes, I have the properties, which cashflow a total of $3120 and I own another business that puts on running events, which brings in an additional 22K per year. The goal is financial freedom and no longer having to work my 9 to 5 job.

With all of that above I am having problems figuring out my next move: Is it best to pay off one of the mortgages like the 4 Unit? But then I have read why would you do that when you should just be letting the tenants pay off that mortgage. So do I save to buy another property with a large deposit? My fear is that I have to get rid of some of this debt in order to get my next loan, which by my calculations if I put a decent chunk in most months shouldn't take a long time, but I would prefer to do things properly, rather than having someone ask why did you do that and be uncertain.

Thank you for taking the time to read and potentially respond, looking forward to hearing some of your own thoughts.