Guidance on selling SFH Portfolio of 14 properties (10+ year cashflowing business)

[Kyle Diorio]

Hi everyone, new here. I own 14 properties in Jacksonville, FL with my dad, and he's getting too old to run things and we are exploring the option of selling the portfolio of 14 single family homes (single story, brick builds). All fully owned and rented (with tenants as long as 6-7 years), generating 20k $ gross cash flow from rents each month. 

I don't know if finding a private equity firm or some institutional buyer/REIT is an option I can explore. I suppose hiring a property manager is an option for a portion of properties to lessen the load, but don't know if I trust that, and would perhaps rather sell it all. Any advice is welcome, thank you so much.

[Kristen Ambrose]

Welcome. That’s a strong portfolio and there are a few good paths you can take:

1. Sell the whole portfolio
   A private equity firm or REIT might be interested since the homes are fully owned and rented. It's fast and simple, but the offer might be lower than if you sold individually.

2. Sell one by one
   Takes more time but you could get a higher total sale price. More work and coordination, especially with tenants.

3. Hire a property manager
   If you want to keep the properties but reduce the work, a solid property manager can help. Interview a few and check references carefully.

4. Do a 1031 exchange
   If you're looking to step back but not fully exit real estate, you could sell and reinvest into something more passive like a triple net lease or DST to keep cash flow and defer taxes.

Each option depends on how hands-off you want to be and your long-term goals.