Advice for property situation...

[Roy Butler]

Hi all,

I'm new to the forum and would really appreciate some advice on my current situation.

I'm an engineer in the Pasadena, CA area with a great (non-RE) career which is pretty safe, but just covers my family's expenses - including our townhome.

My father recently passed away and I obtained a luxury home in Gualala, CA (little equity, huge payment), a lot leased to roofers in Torrance, CA, which I'm kicking out because of non-payment (~500K equity, low payment), and several pieces of San Bernadino desert property (mostly paid off).

I have the Gualala house up for sale and will hopefully get a little over what's left on the mortgage, if not, I plan on leasing it in 6 months.

I have one desert property in a developed area up for sale. It's already paid off - we'll see what happens. May be worth $80-$90K.

Just finished evicting the Torrance property renters for non-payment. Very little owed here. Planning on selling as lot and using the ~$500-$600K +25-30% leveraged borrow to purchase either a small triple-net lease property or small apartment complex. This would be using the method where I get involved in the new purchase within 45 days and don't pay taxes.

The rest of the desert property could conceivably add up to ~$500K, if it were all to sell (yeah, right). I don't have plans for any of it right now. I'm considering just waiting 20 years on it.

Given all of this, can anyone please give me advice on if the general strategy is sane. I'd like to do what's most lucrative, but not expose my family to too much risk. Mainly I'm concerned with whether or not it's a good idea to sell the Torrance lot to invest in a cash-flow property (as I have little side money to build it up) and whether it's wise to let most of the desert properties sit, as San Bernadino is in terrible condition right now.

Thanks so much for any advice!
Roy