Keep Renting, Refi or Flip

[Keaton Wright]

So I’ve been stuck for a couple years going back and forth. Any advice or where to go?

In 2018, along the Texas gulf coast, I purchased a group of (4) homes next to each other via owner finance.

The sell price was:

$246,500

Down payment was:

$40,000

Mortgage is 15 years @. 7.5% still owe about $150k and considering a refi with actual bank in a couple months

These houses need work:

1st house-$100k value is a 1/1 doesn’t need much rehab at all. Brings $1100 in rent

2nd house-$60k value is a 2/1, needs $40k in renovation. Was bringing $600 due to the work it needed but it will bring $1200 in rent once renovation is complete

3rd house-$125k value 2/1 with separated apartment. needs $20k in renovation after the last tenant left and in the process of now. Brings $1200 a month in current condition. Plan to raise to $1350

4th house (corner lot)-$175k 2/1. Will need $10k in renovation and renew after tenant leaves. (Plan to repaint outside) Brings $1100 a month

When I had 100% occupancy, it brought $4000. I had it 100% occupied most years. The market I’m in is great for renters (but the quality of renters can make you pay attention to their applications) 

 I’m rehabbing the 3rd house now, plan to remodel the 2nd house after I’m complete and then unsure if I should:

-obtain traditional mortgage then should I cash out refi and find more property?

-Sell one of the homes and clear the mortgage (throwing in personal money) and continue to rent as normal

-Sell all properties 1031 exchange using as a down payment and go after a commercial deal (8% cap or better)

I’m leaning towards the last because as I advance with my career, it takes up more of my time. But I feel like the extra leg work in being a landlord isn’t that bad because the process is pretty simple. But it can be a pain in the *** at the wrong time

I’ll hang up and listen.