Maximizing Cash on Cash (Need Advice)

[Matt Rosenbohm]

Hey Everyone,

Thanks for taking the time to read and give input! Here is my scenario:

I want to make sure my rental portfolio is at its maximum potential without over-leveraging. I have been so focused on my flip business I have not taken serious time to evaluate my current portfolio performance (other than basic p&L's, etc)

When I first purchased my rentals they were performing at about 20%-25% Cash on Cash. BUT, now with all the equity growth an principle pay down they are performing around 6% cash on cash. In other words I have a ton of capital making a tiny 6% cash on cash return. Good problem, but just can not seem to make up my mind on how to proceed, would love your input... I have about 2 Million in equity and willing to leverage at 80% LTV

1. Refinance and Purchase More Properties 

*I am in the Northern Colorado Market and I can find new (off market deals) rentals for about 10-12% cash on cash in our current market. I have considered buying out of state to get better returns

2. Sell and 1031 into Large Multi Unit (apartments)

    *current properties are mostly 2-4 plex student housing and single family

3. Continue to Pay Down and Payoff Properties

I have gone over the pro's and con's of these (and others) options many times, rather than list all of that I would love to get any input you wise BP'ers have! 

(obviously I know all advice is market specific, but would just like to get your general input)

Thanks,

Matt