Splitting equity - multiple properties or better property
My family and I purchased properties in Scottsdale, AZ a few years ago which have appreciated significantly over the past 5 years to the point we have around $1MM in equity while having a cash flow of around $2K between the properties. As the managing partner, I'm trying to determine what's best as a next step.
I'm considering a few different routes including: 1) cash out refis on one or both properties 2) line of credit on one or both. I'm a former VP of a bank so I understand the advantages and disadvantages of both options, but it will really come down to matching financing with strategy.
This is where I'm struggling more: is it better to utilize the "lump sum" equity and buy a better home in a "better" market (our families live in Denver and we know Scottsdale fairly well, but our $800K is more likely to result in 1 or 2 down payments vs a cash purchase) or split the $800K into smaller chunks and investigate a higher volume strategy in a smaller market where our cash goes further (cash purchases and refinances or multi-families).
Would appreciate thoughts/experiences the community may have with "quantity vs quality"