Thoughts on Next Move?

[Ian Coyle]

Just wondering Upstate NY folks take on a situation I find myself in.....a good one.....

Original goal was to be @ around 5K/month in passive net income through buy and hold properties mostly doubles/duplexes, in Buffalo.

Got up to 11 units over 5 properties, had to sell one, now @ 4 properties and 9 units. 3 doubles and a 3 unit.  
Full rent roll is 5,600/month gross. Up to about 2,500 net after management, etc.

Properties since purchased (2014-2016) due to the Bflo market heat have appreciated. One about 50%. The other three more in the 20% range.

I am contemplating "scaling up" via 1031 and using equity to purchase 1) a larger apt complex or 2) perhaps 1 or 2 "more desirable" properties in better areas of the City. Doubles in the 150K range say.... With equity + some cash reserves for down payment, I am thinking in the range of 200-400K worth of property I could secure @ 75% financing.

VS

Just continuing to use cash + net income to secure down payment money on the next purchase and continue to snowball into more units. (original goal) Concern there is raising offer prices on these Bflo doubles are pricing out investors like me and of course the "normal" investor qualms about unit/door management and tenants, etc.

Anyone have any thoughts/constructive criticism, comments?

Thanks. Appreciate the honest take.