Exit strategy issue - to cash out or not to cash out

[Theodore Tasoulas]

Hello BP!

We have a 4 unit with an exit strategy issue. 3 of 4 units were renovated—doubling rents and bringing to market rate, but we now have 30k in debt that we want to remove from our ledger. The appraisal is stopping us from a true BRRRR, only pulling about 20k out, which is an issue with higher cash flowing lower appraisal areas (lesson learned). Options are below.

1) After a cash out refi, we would still have to use all the cash flow to pay down the remaining debt for nearly two years. 

2) If we don't cash out, we are at 31 months debt pay down if we use all cash flow.

3) Use reserves to pay off the 30k, but we want to use this for purchases.

Any ideas or feedback appreciated!