1031 problem solving for more income

[Julie DeWolfe Arroyo]

More advice would be appreciated.

8 paidoff townhomes (100k per unit) aren't pulling the income necessary, hoa fees are eating the owner's lunch, he cant self manage anymore, nor can he afford property management.

Market looks good to sell 8 townhomes right now, the speculation is to buy rental homes (avoid tax)(no hoa), in nearby community, then use them to finance flips. Townhome values are more likely to be affected by upcoming market changes, homes hold the value.

Break it down and tell me what I'm missing.

Thanks in advance.

[Jacqueline Gardiner]

Good Morning, Julie! I'm thinking about pretty much the same thing. I have money in a medical building and it's been a slow, steady earner, but I'm only making about 5% on my money. I started looking at build-to-rent homes, duplexes and quads in a part of the state a few hours away where cash flow is possible. I could potentially leverage into as many as 14 houses, but I'm concerned about how to finance that (which I have yet to investigate). My first step is to put together a project team as I have heard advised numerous times. I started with the NARPM website yesterday (National Association of Property Managers) and found 3 property managers in the area where I have interest. I recognized one of them from BiggerPockets and started a conversation with him yesterday. 

I have one thought about your transaction and that is that it might be easier to manage it and all of the moving parts in multiple transactions. I suppose if you're selling the townhomes to individual buyers, it's probably going to work out that way regardless. But, it would give you more time and flexibility in finding the properties you want to purchase. 

If you're interested, we can keep in touch and help keep each other on track to meet this goal. I'll send you a connection request.