That 2.7% rate is pretty special...If I were in your shoes, it would depend on what I could leverage that 200k into out of state.There is ample opportunity here in KC (my market...I work as a Realtor here and own 3 SFR as investments).

@Scott ScovilleHi Scott, I completely agree that the prices in California such as San Jose has completely sky rocketed, which makes it impossible for me to get my foot into the door comfortably.

Try thinking of the situation in their shoes, why would you let Timothy have this house for free and keep the mortgage in your name?

Great entrepreneurs get comfortable being uncomfortable.

I was in your shoes 4 years ago and took the leap into real estate investing. 

I figure I'll have my debt paid off by 65, so I'll be very comfortable come those golden years. 

But if I were in your shoes, I would keep the quadplex, hire a PM since I'll be out of the state and then run the numbers on what I could do if I pull some equity out with a refinance. 

This is also for those who might be in my shoes.  

When my reserves go beyond my comfort threshold, I immediately deploy them into another investment.

Just leverage enough so your cash flow is comfortable.