Which direction to take moving forward to best scale $$

[Sean Gallagher]

I currently have a SFH 3/2 1800 sf out of state where I used to live. I got a great deal and the plan was always to turn it into a rental after rehab..and then move onto the next. Then I got a job, moved, and manage it from afar.

PITI comes in around 730, rents for 1340/mo, renewed lease just before everything exploded so it's a little below market. I have a large 30x36 shop on property not being used since all my junk is in it, if I gave tenants access to this space I don't see why current market wouldn't allow for at least 1700/mo+.

So to recap

SFH 3/2 = Rents below market for 1340.00 - PITI 730 = 610/mo

110k owed on mortgage, appraisal around 260k

My current plan was to sell the property at the end of the year 1031 it and use my other funds to purchase a small apartment complex. There seems to be an argument with successful REI's much more experienced then myself on keeping this property. I feel like cash flow gets us freedom, not tied up equity. So wouldn't it make sense to always maximize borrowed funds and focus on cashflow?

There's so many ways to go about this.. 110k isn't a ton of money to put on a property that would flow 1700/mo, around 20k/yr of course not taking into account any possible repairs... but shoot I already have a new septic & AC unit.. then all that equity just sitting there.

A)  Do a cash out refi pulling equity, creating little to no cash flow, hold for long term appreciation, use the $ for next deal. (Seems risky)

B)  Sell property outright and roll all equity into next investment.

C)  Work toward paying the property off and reap the benefits of getting as much cash flow as possible... but have a lot of equity tied up just sitting.