What do you think about this Strategy?

[John Philip Eugenio]

I own three houses in CA (2 San Diego and 1 Oxnard). The Oxnard house is currently tenant occupied and the tenant is possibly moving out this summer. This house is under VA Loan at 2.5% interest rate. I also have HELOC under this house.

The strategy that I have been thinking is to sell the oxnard house. I would take at least $160,000 after everything is paid off including the HELOC.

What would I do with the money?

I plan to do 1031 exhange buying 3-4 duplex/fourplex in Cleveland, OH with 5% CoC or better. Plus, It would be free up some of my VA entitlements which would lead to $560K entitlements. Therefore, I can use VA Loan to buy another home in San Diego as well.

What would you do in my situation?

My goal in real estate is: to own RE both cash flow and equity. Owning RE in Cleveland would give me that cash flow, and CA houses would be the equity. Why do I need cash flow now? To cover some expenses like my kids' private school and fund future RE.

JP Eugenio