Cash-out refi - now what?

[Eric Shaver]

Hey everyone! I've been a long-time listener and intrigued by all the different ways to make money in the real estate world. I live in Bend, OR, and am just finishing up a cash-out refi. Our property values are absolutely through the roof. The question is, do I take out cash or not, and if so what do I do with it?

Option 1: Take out cash and purchase a friend's property off-market. Priced fairly high, but just remodeled and in a desirable long-term location. Low cash flow, but EXCELLENT location. Would need to live in it for a while, but would turn into an Airbnb with the possibility to increase cash flow. 

Option 2: Take out cash and purchase a property in a less desirable, but reliable area. Lower price, possibly better cash flow simply due to price/rent. Long-term rental. Would need to move into it as well. 

Option 3: Take out cash and buy 1-2 properties out of state. Much lower leverage could even buy 1 cash or 2 with half down. Seems riskier though.

Option 4: Take out cash, build on it for a year or two and look for a deal in the meantime.

Optoin 5: Don't take out cash, keep my mortgage to an absolute minimum and save for 1-2 years for the next property. 

I've worked this from every angle and it seems like they all make sense in their own way. The tough part is, our market is very inflated right now. I just can't decide what the smartest option is. Any advice would be appreciated!