+1renue74 wrote: ↑Mon Apr 15, 2019 10:21 pmI own 9 rental properties + 1 full time airbnb property and net about $100K/year in rental income. I self manage....except for 2 recent buys I just bought.
I've always self managed...for 7 years. I don't mind dealing with the riff-raff. My plan is to do it for 10 more years and sell off then.
I actually just bought a 3 property deal from an investor who went into a 1031 exchange. I'm pretty sure you have to have one transaction if you want to exchange into the total amount.
1.) Look at your most difficult properties. You know the ones, that sorta kinda suck and has never really had decent tenants......and hand those off to a property manager. Just do it for a trial. It'll cost you 10%, but you won't get the calls.
2.) How to find a good property manager? Look at local real estate agents who also have rental property. See who they use for property managers. Ask around.
I have landlord friends who have cycled out. After 20 years, they hated it. They tried to sell me package deals, but they wanted retail prices for properties that obviously had deferred maintenance and low paying rents. They eventually sold their properties off...I think it took about 2 years for each one to sell about 20 properties each.
If you do decide to sell....sell over a few years to reduce your tax burden.
But, I would suggest the property manager route first. But, you need to make sure it's profitable. There's no reason to have a rental property that doesn't cash flow well.
Plan the work, work the plan.
In addition to a step by step "exit plan" for the OP (fed up landlord).
The 1031 can be split up to a variety of properties as long as the total is equal or exceeded.
It took me at least 8 years to step back from 100's units, self managed, over 30 years. As you say, there has to be a long term plan to exit from this while minimizing loses, maximizing gains.