$175k in equity, cash flow, and I STILL don't know my next move

[Austin Smith]

Hey all just wanted to get your opinion. I'll make it nice and easy.

9 units stretched across 2 properties. 100k in equity in one, 75k in equity on the other. My wife and I bought these FHA.

The original plan was to buy two rentals with FHA, refinance, then buy two more with conv. 5% (I've already consulted with a couple underwriters and they have confirmed we can do this as long as it's a major upgrade from our current living situation - please let's not debate this part lol).

Not sure if I should:

1. Sell and now use those funds to start the process over (Doubt I would sell).

2. Continue with the plan

3. Go with an alternate plan which is to break into a cheaper market near me and use the equity as down payment via heloc.

4. Or just do all the above lol

What would you do? 

[Austin Smith]

Originally posted by @Danny Randazzo:

@Austin Smith personally you should sell everything and scale up to larger properties with more units. The reason I say that is because one costly repair to a sfr (plumbing line, hvac, water heater, etc.) could ruin your cash flow for an entire year which then means your investment breaks even or is a loss for you (not great when we need time to compound returns). However, you should figure out what your family needs and goals are then figure out what investment makes sense for you. For example, if you live off the cash flow generated by your current assets then you might not be able to sell them right away. Good luck.

 They're both 3-family properties. 

When I move out of the unit I'm living at currently, $2,500 will be the monthly income. 

The honest 1st tier goal is 10k net cashflow. 

Average net cash flow per property I buy is about 750-1000.