selling vs. hiring manager

[Kenneth LaVoie]

Just need to brainstorm with anyone interested: We've put a great deal of time and energy into marketing our properties for sale. But to make it "worth it" we need certain prices. I suppose they are "retail prices" creating a 7-8% CAP rate overall. We ended up selling one 11 unit, a duplex and single, which allowed us to pay off the mortgages on two 7 units and a SFH. This almost entirely offset the loss in income from selling the buildings. Nice consolidation. We're in good shape now. But we want to "retire and travel" soon and want to be done. Our prices are such that we fear the appraisals won't come through and we don't want to lower our prices. I don't like wasting time and I feel like that's what I'm doing ... We could simply hire a manager but we could also just create a "quasi-management" situation where we have someone that is boots on the ground and we continue the "office work" which is fine with me. (It's my favorite part actually). Have any of you faced a similar situation? I think it's easy to say "just offload the management" but I don't think a managed portfolio of buildings is quite the same as a managed portfolio of stocks and bonds. (i.e. there's still some risk, stress, etc. involved) Not to mention that paying 10% + leasing fees "goes up my bum sideways! haha!" Without divulging my entire financial picture, our networth is roughly divided equal between equity in our buildings and retirement accounts. If we sell any cheaper than asking price, we will "take home" less money than if we keep the buildings (even paying a full priced manager). So it's a little bit of a condundrum. Leaning toward keeping forever...avoid the tax hit, more income (on average) and as long as our systems are in place, we should be able to travel in peace. I think part of the resistance is that we worry and we care. So that won't go away unless the buildings go away (maybe invest in some psychotherapy for that part! haha)

Ok, just looking for thoughts here, nothing more. I feel like there's somebody out there that must be going through the same wonderful decision. It's really a good problem to have. No complaints!

Thank you all. 

[Carl Hebert]

Originally posted by @Kenneth LaVoie:

 We could simply hire a manager but we could also just create a "quasi-management" situation where we have someone that is boots on the ground and we continue the "office work" which is fine with me. (It's my favorite part actually). Have any of you faced a similar situation? I think it's easy to say "just offload the management" but I don't think a managed portfolio of buildings is quite the same as a managed portfolio of stocks and bonds. (i.e. there's still some risk, stress, etc. involved) Not to mention that paying 10% + leasing fees "goes up my bum sideways! haha!" 

I have a "quasi-management" situation with my portfolio in Lewiston/Auburn. A friend of mine sold his last two buildings to me from a partnership he was in and ended up working for me. I manage all the the office work while in Maine or while traveling. He takes care of everything else while I am gone. When I am in town we both work together on remodeling units and doing maintenance. 

This quasi-management has worked well for me so far. 

I know this post is a couple of months old did you end up making a decision yet?