Paid cash for all our rental property....now what?

[Kevin Nichols]

Over the last few years, we have bought (and sold) rental property.  We have approximately 5 properties worth about $400K with no mortgages.  

I've considered cash out refi's (have done them in the past), but we already have other cash ready for any new rental property deals to come along.

So...what's the best practice when all your rentals are cash flowing well and you don't have mortgages?  Seems stupid to cash out refi.

[Patricia Steiner]

Congrats on your success!  And, I like buying with cash...most (if not all) of my clients are cash buyers as well.  I'm all for mortgaging the properties when there's a reason to do so.  I'm not for doing it for sport.  My recommendation would be:

1.  Wait until you find an investment that exceeds your cash holdings - or when you simply don't want to give up the cash to refi.

2.  Look for credit unions and banks who are offering "No closing costs/no fees" for Equity Credit Lines.  That's a good time to put a line in place and let it sit until you want to use it - if ever.  

Again, congrats...it's a great problem to have.