pay off mortgages or buy more rentals?
what is the general consensus on maximizing cash flow on low cost rental houses? I have one in particular that just about breaks even after some capex costs just about every year. I don't owe a ton on it but the payoff could be used to purchase another property. I haven't seen any great deals where I'm looking in a long time that I was able to jump on so I am getting resentful that I have money but it's not really working for me. Paying off the rental mortgage would turn that house into a cash flow positive of about $500 per month after hold backs for capex and such. Buying another house potentially months and months down the road would maybe generate $200 per month but would obviously be paying down the mortgage.
My gut tells me to pay off one of the rentals and that will put me in much better long term position but my head says to buy another house and increase my portfolio which would be up to 4 houses at that point.