Parents second house. What to do with it.

[Chris Bruneau]

Good day all! Parents have a second house, paid off, 1450 SQ ft. 4bed/2 bath. Built in the 50s renovated in the late 90s, Rents for $850. They plan to move out of the state. Appraisal @ $110,000. 1031 exchange? Rent out? Sell and invest in the stock matket? Any suggestions and insight welcome!

[Dave Foster]

@Chris Bruneau, A paid off asset, full depreciated with significant gain, owned by folks wanting to exit the landlord business- this is the perfect property to 1031 into a passive commercial asset where the value is the lease and longevity in decades. The transition for most long term or 1031 investors is to hold till depreciation value is gone and then rather than sell they 1031 into cash flow and look elsewhere for depreciation. The numbers would not support a full NNN purchase of any quality even with significant leverage but a fractional interest paying in the 6-8% range would be a good candidate.