Own Free n Clear or Debt and expand

[Steve Williams]

Hi Fellow REI Comrades. Interested in some seasoned investor mindset here. For the sake of this conversation, I have four out-of-state rentals in Cleveland under management (one duplex and two SFR's), with roughly $735k cash invested (no debt) and ROI is approx. 7%. Im considering taking $150k out of the duplex to put 50% down on another duplex that costs (appx.) $300k with $1800 rent each side. Running some quick after debt numbers, it appears my new cash-flow (on both duplexes) will be about the same as current cash-owned unit, but with the additional property tax/depreciation/appreciation advantages. I believe this monetizes to around $18k/yr. Is the extra exposure, etc.. worth it... I'm 67 and cash-flow is king at this point.