Experienced SFH Investor: Next Steps?

Question

Hello everyone, I am reaching out to the BP Community for suggestions.

My Portfolio
100% owner of 7 SFH Properties
GP in about 30 SFH properties(of which I own somewhere between 25% to 50%)
All but two properties are managed by a PM Company
Net worth of the above is about $2,000,000 - $2,500,000

My Issues
I have many SFH's - Which take up time(Currently spending time paying property tax and insurance, requesting quotes on insurance policies and overseeing the PM Company(approve rent increases, approve renovation projects, etc).
They also take up head-space(having to remember property addresses, remembering when property taxes are due)(I have reminders/systems but something I would like to reduce)

Goals
1) Spend less time on Real Estate
2) Free up head-space
2) Make $240,000 annually from real estate(Which I think is not to hard if I can increase my net worth and can get an 8% return)

Possible Solutions
1) Sell all the SFH's and buy 4-Unit Properties to take advantage of conventional financing
2) Sell all the SFH's and buy one large apartment complex
3) Sell al the SFH's and invest in syndications
4) Sell all the SFH's and purchase stock / bonds
5) Continue to hold all the SFH's
6) Any other suggestions

Other Considations
1) Should I consider private notes? Private notes require more work than Stocks / Bonds, is the added return worth the extra work?

I look forward to hearing your thoughts

Basit Siddiqi · Answer

I read your message but I am not sure it is what I am looking for.It appears that are a mortgage broker and help investors get financing (correct me if I am wrong)I own a lot of properties free and clear. Getting more mortgages does not help me with the two issues I outlined - spending less time on real estate and freeing up head-space.

Shiloh Lundahl · Answer

@Basit Siddiqi Have you considered getting an assistant to manage all of those things rather than a property manager.  Depending on the location of your properties, an assistant might be much better than a property management company. An assistant can do most everything that you need done and they work directly for you rather than a property management company that has several clients and you’re just one of them.

Also, again, depending on the location of your properties, have you considered doing a lease with the option to buy?  It takes about a quarter of the effort to manage a lease option property that it takes to manage a rental property. In other words, you can manage for lease option properties with the same amount of effort that it takes to manage one rental property. So it would cut down dramatically on your time, effort, and headspace. You can also trade up these properties quicker into other properties where you can force equity.

Jaycee Greene · Answer

Not a mortgage broker. A Fractional CFO. I manage the real estate portfolios of my clients so they can focus their efforts on whatever they consider to be their "Highest and Best Use", which is usually looking for their next project.

Jaycee Greene · Answer

@Basit Siddiqi Just sent you a DM

Basit Siddiqi · Answer

In this instance - What does the Fractional CFO do?What is the cost of the service?

Bill Hampton · Answer

1. Hire a virtual assistant

2. 1031 into a DST

Jaycee Greene · Answer

@Basit Siddiqi How about I suggest 5a: Do what 5) says but add to it, "hire a Fractional CFO to handle most of this"? I know you're going to say, "But I'm a CPA!" Yes, but your "highest and best use" is being an accountant to your clients, not handling the minutia of your RE portfolio!