Should i go this route...

[William Huston]

Hey All,

So a few days ago i reached out on this forum after being absent for the most of 3 years because my rental property had burned down... long story short 3 years later i just got the keys to my newly rebuilt townhome rental. After putting the numbers out there, i was asking for advice on selling it to maybe fund a new primary residence i could house hack or keep it and turn it into a rental again...

Anyways.. so someone mentioned that i go about investing wrong.. that i should keep loans on the rental high enough that i can afford them or break even on passive income, because most of the profit is made from refinancing them and pocketing the difference from appreciation.. 

So he told me.. refinance it, take the money and purchase my house hack primary like i want. This would maximize my returns...

In my mind ive always looked at deals for most cash on cash passive income as key.. but now I'm being told I've been going about this wrong.. help me out, because now I'm starting to second guess my investment understanding.. 

Property: 

Townhome 

2/2.5 w/pool

purchased 49k in 2009 @ 5.25%

current value 230k

estimated rent $1135/month

HOA 325/month