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Updated 5 months ago,
Should I go all in with 1031 exchange into DST/721 UPREIT stradegy???
I am an experienced RE investor but on the younger side at only 41 years old. I have been doing a ton of research and just completed my first 1031 exchange into a DST-721 UPREIT. I am considering liquidating most of my portfolio of 35 rental units and exchanging into a handful of DST-721 UPREITS for a very long term hold. My current return on equity across my portfolio is around a pitiful 3.5% since our equity has grown so much and we have paid off almost all of our debt. Given that, we would get an immediate boost in cash flow which will also be very predictable month to month and save myself a bunch of time managing my property managers and dealing with the ups an downs of active real estate. The REIT's would bring a lot of diversification across several RE classes and both US and global RE markets. I see very little downside in going all in on this strategy. I know the typical drawbacks of not being able to exchange any further once my DST(s) are brought into the REIT but I am fine with that and have no more desire to actively invest in real estate. I have read, watched and listened to most every piece of content I could find on this topic and I am just not seeing much downside and am seeing a TON of upside. Is there any reason you would not consider going on all on this DST to 721 UPREIT strategy?