Hey everyone, 

I have had a flurry of posts over the last 2-3 days while trying to work out what to do with a LTR in Plano Tx on the eastside. We are now wondering if we should sell it. We owe 164,000 and its worth 225,000. It cashflows 250 a month but could be more if we raise rents (which its due for, we charge 1625 but could get 1700-1725). We want to scale but don't have the capital to get started. We feel like we have 3-4 options but really need advice on what to do.

Option 1: Do a cash out refi and take 15k in equity to fund another deal and LTR or STR this unit. We have another STR in this market. If we refi conventional than we free up our VA entitlement to use on a MFR, so potentially 2 deals next year.

Option 2: Sell and take the equity (close to 30-45) and fund another deal (do a BRRRR in a new market), free up our VA entitlement and purchase a MFR. The BRRRR could lead to more deals if we do the number right. So 2 deals next year with the potential for more sooner.

Option 3: Refi to conventional, don't take cash out and only free up my Va entitlement to purchase and focus on a good MFR.

The problem that we are running into is our STR's, no one will refinance us until they see that income on a 1040. All of the lenders we talk to say they want at least 12 mos of documented income. So for a" buy and hold BRRRR, for STR" we are stuck only doing one deal a year. If we turn the Plano home into an STR then we have to wait until the next tax year to even fund another deal. Otherwise we show a loss and wont get financing.

What would you do in our situation?