Cash out, refi, 1031 or other?

[Carol Burns]

Hi all! I have 2 SFR's. One 3/2 single wide mobile home on 1.5 acres, $125,000 equity, no mortgage, $575/month rent, $215/month cash flow. One 3/2.5 SFR on 1.5 acres with $175,000 equity, $150,000 mortgage at 3.625 percent, $1950 rent, $625 cash flow. If I'm doing the math right, I'm only making 2 percent and 4.2 percent on the equity? Am I looking at that incorrectly? Is it time to do something different with these properties? South of Charlotte, NC

[Caleb Brown]

Both seem ideal for 1031 especially for the cashflow on the first deal. 2nd deal you can possible do a cash out refi or try a HELOC. It is a nice layout and lot, Charlotte has also been increasing in value and population so I do think long term it's a great area to hold. Either way you should have 200K+ equity to dump into another deal. Maybe look at a multi family up to 800K. In my market that'd be 6-12 units so better cashflow.