Hold or Buy?

[Peter Shah]

I’m working with my father on managing his RE. 

We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow.

My father is 60 years old.

We have been discussing options on how to move forward. A cash out refinance to buy more property would put a substantial dent in cash flow with current interest rates. Also would come with the stress of a loan, and debt servicing. Not to mention the upkeep of the new property, and its loan stress. 

Would the best option be to just hold? $200k is no small sum of money. 

To obtain $200k worth of cash flow at current interest rates would require around $7M worth of purchased real estate in the NY metro region if they all had loans at their nascent stage. 

What would you do if you were in our position? 

[Brandon Croucier]

DSCR Seems like the best product, at lower leverage I have some rates that are even beating rates on primary homes, would love to connect and discuss a bit further.