Do I sell it all and call it a day??

Do I sell it all and call it a day??

Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes

BP,

I've been wrestling back and forth on whether or not I should sell my entire multifamily portfolio and get out of the game, so I figured I'd throw a post on here to get a little insight!

My current portfolio consists of 160 multifamily apartment units, over the course of a 10 year period it has taken a lot of hard work and sacrifice to get to the point of where I am. 

Most of my portfolio is mainly B class properties, with some A class properties mixed in. All in decent/good locations. All properties have been managed very well over the years and currently has a great tenant base with no vacancies.

The main reason of potentially wanting to sell is that the maintenance calls are starting to wear on me. I manage all these properties by myself and it just takes a toll dealing with 160 people on a daily basis. I've went down the road with a management company before, and I refuse to go back down that road. It is what it is, other people don't manage or treat the properties like the actual owner. It is essentially, my baby. 

I am also only 37 years old. Which I'd like to think is still a fairly young man lol. So do I hang on for 5 more years or so? I still do enjoy the game of chasing deals, it is what really keeps me going and gets me excited, but managing after the fact has just turned to wearing on me a bit. 

Also, most of my property is based in Illinois (it is my backyard) and the taxes around here are brutal. It's just not the best state to be invested in, as I'm sure you all know. 

I would absolutely miss the cash flow aspect of it though, getting re occurring income every month is definitely something I weigh in not to sell. 

I would prefer not to go into numbers on here, but if it comes down to it, I will. If inboxing me is better to get into the numbers game, feel free to do so!

I know that is all fairly brief, so if there's any other questions, feel free to ask! I appreciate all the feedback!




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Andrew FreedBusiness Member
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
1y

@Stephen Jones - I truly think your issue is you are not utilizing leverage and delegation effectively. You can build an entire property management company pennies on the dollar if you hire internationally and yes, it will take from your profit, but it will buy you back time. I recommend reading Buy Back your Time, amazing book and all fundamentals you should be utilizing given the size of your portfolio. I personally think if you hold and learn how to leverage others, hire right and delegate effectively, you will be much happier and richer in the long run. I personally own over 400 doors and have done this across my portfolio so I'm talking from experience. Feel free to reach out if you want some best practices. 

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  • Lender · Member since 2025 · 8 posts · 2 votes
    1y

    Hi Stephen:

    Options are available. Let's discuss. Based out of Newport Beach, CA

    Salman

  • George SkidisPro Member
    Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
    1y

    Selling everything at one time will have some MAJOR INCOME TAX consequences. Are you ready to pay the maximum in capital gains taxes right now? PLUS, someone who wants the entire package will expect to buy it at a discount.

    Immediately after the sale, take the sales documents and meet with your income tax preparer. Have them look into making estimated income tax payments to avoid late payment penalties and interest. Yes, even if you file on time and pay by the 15th of April you can still be charged late fees and interest if not received in a timely manner throughout the year.

    If you must sell, consider disposing of one or two buildings per year over a period of years. Start with the one that is causing you the most issues. Then work your way down the list always selling the most problem unit next.

    At some point you may decide what you have left is now a manageable rental business. At that point you stop selling.

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