Underleveraged -- what should I do?

[Arthur D.]

Hi! I have a townhouse with negative cashflow and a SFH that I paid cash for. Together they have a positive cashflow of about 450 per month. I would like to know if I should sell both and get a MFH or just keep trucking with this current setup.

Details:

Townhouse: 510k purchase price + 30k renovation; Mortgage Info (15 year, 2.5%, 11 years remaining; 290k balance); Est property value 585k; rent 3k per month. P&I 2,500. Taxes 450/month; HOA 525/month. Approx. 1650 additional equity per month.

SFH: 85k purchase price; 65k renovation; est current value 190k. rent 1650, no debt; taxes 4000/year.

I live overseas so I cannot actively manage these investments. I have great tenants, but suspect I could do much better if I were to use the cash to buy an apartment building with the proceeds for a down payment.  

Thanks!

-Arthur