Triplex Purchase advice please

[John Schutt]

I currently own 4 SFR rentals in the Kansas. 3 are paid off. Each worth approximately $250K

Recently I came across an opportunity to purchase a triplex. It was suggested that I could get a commercial loan with no money down if I used one of the paid off rentals as collateral. All previous SFR have traditional 30yr notes.

After a bit of number crunching I discovered that while the property would cash flow with 100% financing, it carried a larger upfront cost to close, and a slightly higher interest rate. A traditional 30 year mortgage would provide higher cash flow, but with 25% cash down payment. ( approx $60K)

I have the cash for the down payment, but was thinking I should keep the cash for repairs and upgrades to raise rents, or better yet purchase another triplex. 

My question to you RE guru's is should I use the paid off rentals as Leverage, or go for the cash flow?

Thanks in advance to all respondents,

John