Investment Dilemma: Cash Flow from Repairs or Diversify with New Properties?

Hi Everyone,

I’m a newbie investor weighing some key decisions and would like to know how an experienced investor might approach this situation to maximize value and cash flow. Here’s the context:

I own a rural property with two rental units:

1. A manufactured home from the 1980s in temporary status with the county (meaning it can’t be replaced), which currently rents for $1,350 per month.
2. A one-bedroom permanent residence that rents for $1,300 per month.

My monthly mortgage payment is approximately $1,200, and cash flow is crucial to me right now. I’m considering refinancing to lower my monthly payment to around $850 and potentially using $30k-40k to invest in one of several ways. Additionally, the manufactured home needs a deck replacement and other minor repairs, with quotes ranging from $28k to $38k for the deck work alone.

Here are the options I’m considering:

1. Refinance, then invest $30k-40k into repairs for the manufactured home. This doesn’t necessarily increase the property’s value due to the home’s temporary status, but it does keep the $1,350 in rental income intact.
2. Refinance, skip repairs on the manufactured home, and instead use the $30k-40k for other real estate purchases. This could mean investing in property flips or purchasing out-of-state rentals for more stable income, but it would require letting go of the $1,350 rental income from the manufactured home.

What factors should I consider for each option, and how would an experienced investor assess this situation mathematically?