Rookie seeking advise

[Robert Dudley]

I am new here, it seems like a lot of smart folks here. I purchased 3 single family homes in a cheaper area than where I sold my home using a 1031 property exchange. It has been 4 years now and all three have gained good equity, approximately 100,000 ea. Each property basically pays for itself with a small amount profit each month. How can I make these work for me to acquire a multi- family unit with out selling any ? Thanks in advance Robert

[Frank Wong]

Hi Robert,

If you wanted to keep the 3 houses and buy a multi-family your only option is to cash out refinance or pull an equity line out of the homes and use it to purchase the multi.  I personally do not like this idea.  You are getting more debt on your existing cash flowing homes to buy another property to get more debt.  Your houses that were positive each month now probably be negative.  This, in my opinion, is the incorrect way to leverage. 

So what are your options?  You can sell the house and do a 1031into a multi or you can do nothing.  You need to look at your total risk in your portfolio at all times.