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Updated about 21 hours ago on . Most recent reply

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Yindy Felkins
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MTR Portfolio - where to post

Yindy Felkins
Posted

Hi All - I have 8 STR and MTRs in Indianapolis had already furnished and have 5-star property managers handling the day-to-day. They all started generating income since Jan 2025. Questions - should I sell them as a portfolio or should I sell them one by one or bundle of 2-3? I am also thinking to sell to other investors who need 1031 exchange or W-2 earners looking for STR Loophole tax-saving. Also - since I am selling them as an operating business and not just the house and the land, should I post them on Loop Net or BuyBizSell? Any recommendation is welcome. Thank you.

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Dave Foster
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
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Dave Foster
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
Replied

@Yindy Felkins, Are you considering doing a 1031 exchange on these properties? If so, bundling them up and selling them as a portfolio would allow you to treat the entirety as one exchange. Which would make your exchange much smoother if you're thinking of buying a larger property. This is what's known as a consolidation exchange, where you sell smaller investment properties and reinvest into larger investment properties to scale up their RE portfolio into something like multifamily or commercial, while deferring all of the tax and depreciation. You can do it selling individually or as a portfolio. It's just easier as a portfolio.

However, you'll get your best price (probably) as individuals. The joker in the deck for you is what someone's willing to pay for your business in addition to the real estate. (BTW - if you're doing a 1031, you'll have to separate out the purchase for the real estate itself, which is 1031able. From the value of your business, which is not 1031able.

  • Dave Foster
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The 1031 Investor
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