Inherited Single Family Property... now what?

[David Luhman]

I inherited a single family rental property (no mortgage) with $1,600/mo cash flow. I was using the rental property calculator to evaluate my property if I was buying at market value as a rental property... the numbers don't look very attractive (attached below).

I've been debating whether to:

1. Sell the property (capital gains will be limited).
2. Leverage LTV for mult rental properties
3. 1031 to another area
4. Do nothing...

I did some some improvements last year like a new kitchen and added wall to wall wood floors on both stories. If I sell I could wait till the market has a "dip and buy things as discount".

If i choose the leverage option, with 20% down I could get a five properties with bi-weekly payments on a 15 year fixed (payed off in 13.5 year, saving ~50k in interest). I'd pay out of pocket a couple hundred to float them, but if the properties were worth the same as I bought them i'd Net 1.5 million from the 70% LTV of the original property. Rinse and repeat... or live off the rent of all six properties $9,600 / mo.

Thoughts?