Planning my next real estate move...

[Aaron Rosenberg]

I own two C-class properties, no mortgage.  The repair bills are high and the tenant quirks can be irritating but on average these properties cash flow positively.  Many look down on such types of properties but everyone has to start somewhere.  

I also own a B-class property.  The cash flow is great but there's a mortgage.  I'm not a huge fan of mortgages but it's about $130k and this seemed like a good time to hedge against inflation.  

Unfortunately the bank was one step ahead of me on this: The balloon payment of $130k is due in 2 and a half years.  There is an intention to give me another mortgage before that happens, but I'm afraid of getting a much worse deal.  

My main concern as an investor is cash flow for FIRE purposes.  I want to continue growing my portfolio but I'm not sure what to do next.  

I'm thinking of selling 1 or 2 C's and paying off the mortgage in 2 and a half years.  The bank's plan is I won't have the money and they can name their terms, (I know it's 5% now but we want 9%) but it'll be nice to pay it all off, surprise them, and walk away with a $2400/month cash flow.  BUT.  That deprives me of my next move for 2 and a half years.  

I can sell the C's ASAP, leave the C-game, and pick up another nice B with another shaky mortgage.  My credit is amazing, but the banks have this lovely balloon strategy preventing us from hedging against inflation.  This would leave me in a bad position with little recourse if I have to renegotiate TWO mortgages in 2025.  OH but what a sweet, cash-flowing, 2.5 years they would be.

I can leave all properties alone and shove more of my  own money into some new project.  This ties up all my personal money but leaves me in a good position to renegotiate terms.  

So.  What would you do?