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Michael Ashley
  • Investor
  • Columbus, OH
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Options to sell / liquidate residential portfolio

Michael Ashley
  • Investor
  • Columbus, OH
Posted Dec 22 2018, 23:00

After many years of residential investing, I'm looking to 1031 exchange my residential portfolio into 1-3 NNN/triple net commercial properties. (finally, time to retire)

I am trying to identify and rank my selling options to achieve the following:

  1. Minimizing capital gains/recapture taxes by getting as many properties into a 1031 exchange as possible. (Taxes would be $200k+)
  2. Minimizing commissions to whatever degree possible: at 6%, fees would be $140k+.
  3. Getting maximum selling value
  4. Not disrupting my tenants and current cash flow

Below, I have ranked (from best to worst) what I believe are my options for selling. Am I missing any options? Would you rank them differently? If so, why.

  1. (Best) Listing all the properties on BiggerPockets: Pro's - No broker commissions, good chance to sell all properties together
  2. Listing properties on Zillow (FSBO): Pro's - lower commissions, potential to sell all properties together
  3. Listing properties with Flat fee Broker on MLS: Pro's - higher price, benefits of MLS
  4. List all properties with commercial broker (Likely paying 6%): Pro's - benefits of MLS and access to commercial broker's network
  5. (Worst) List all properties with residential broker (Likely paying 6%):

Portfolio characteristics

  • 16 Properties / 17 Units / Total value about $2.4 Million 
  • 9 houses in the same class B-/C+ neighborhood (all renting above 1% rule) (
  • 1 luxury type Condo in class A neighborhood (not renting anywhere close to 1% rule)
  • 2 houses in different class B+ neighborhoods (1 renting close to 1% rule, 1 not close)
  • 1 duplex in class A neighborhood [best public school in Columbus] (not renting at 1% rule, but probably could if marketed well)
  • 3 houses in same class A neighborhood (not getting 1% rule, and likely couldn't)

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