Doing a 1031 exchange and looking for best options

[John Sonmez]

I'm on day 2 of my 45 day period to identify a replacement property.

I've sold two residential properties in Boise, Idaho and I've got a 3rd that is under contract, for a total liquid cash amount of about $550k.

I've also got the capability to sell more of my portfolio (about 2.5 million all cash.)

Right now my overall goal is to reduce the headache and issues of dealing with property management companies who are constantly ripping me off and also just the hassle of having 13+ properties with pretty low cap rates.

My goal is to just produce cash flow as I'm already kind of retired and I just want to focus on my online business, not constantly dealing with real estate. (So hands off as much as possible.)

I'm looking to buy all cash deals (but I could be convinced to be leveraged if there is still ample cash flow.)

I'm open to location. I do live in San Diego, but I have property in Boise and Kansas City.

I'm open to DSTs.

Essentially, my long term plan is that I have about 3 million in debt free real estate, how can I turn that into the best cash flow with the least amount of long term maintenance and defer taxes indefinitely? (Or as long as I live.)

Right now I have to do something as the clock is ticking.

Open to advice, and suggestions on how best to achieve what my goals are.

Thanks,

John

[Greg Dickerson]

Sounds to me like you need to partner with someone or leverage everything into 1 large turnkey Multifamily asset. If you have around $3 million to invest that should get you into a $10- $12million asset which should generate around $200k income plus or minus on autopilot. 

You could also passively invest in a syndicated deal if your equity share equals the value o the relinquished property. You can also do whats called a reverse 1031 with the other properties that you haven't sold yet.