How many 2nd's can I carry? And more...

[Timothy Daniels]

I am wanting to sell 10 1-bedroom condos.  I have been using them for vacation/nightly rental for the past 2 summers (bought them in April '14) but have found VR to be far to active, and not really all that lucrative when additional taxes, laundry, furnishings, amenities, etc. are factored in.  I've been strongly considering transitioning to long-term rental.  I am also considering selling them outright.  They are a perfect "affordable housing" option for my high-priced area. 

The buyers are likely to have little money to put down, assuming they can otherwise qualify for the loan. What are the laws for carrying a 2nd for the down payment (i.e is there a maximum number I can carry as there is in owner financing)?  Is it even reasonable to do so?  I bought last year for 490,000, can sell this year for net 750,000, maybe more.  I'm willing to carry the second because I will net so much from the sale.

Rental value of each unit is about 700 with 155 in dues; taxes and insurance are negligible; allowing for vacancy, management, and reserve fund, and debt service, I net about 150 per month per unit.

The bigger question: should I sell with that much gain and 1031 it into, say, a commercial building or a larger apartment complex, or should I hold? It would make a great down payment on something bigger. And, I'm not happy about having only limited influence over the types of neighbors that other HOA members are willing to rent to, and a little concerned about refinancing after the 5 year owner-term expires, as I will be a 25% stake-holder in a condo association that has less than 15% owner occupancy.

Thanks for your input ahead of time.  I've been investing small scale for a little while (I own a duplex, a commercial rental, and another condo besides) and I'm beginning to realize how much I need to learn