Beginning to have choices

[Phillip Beatty]

Hi, I bought my first property in March of 2005, while I was in the military. Since then I was fortunate enough to purchase an estate of three properties (6 rental units) under one mortgage. These properties have more than paid their dues, but now it's time to start shifting properties around and buying larger multi-family housing properties with the equity.

It would be awesome to get some feedback on my portfolio. I have listed enough information to give you a good idea of where I'm at.

Thanks to everyone that takes the time!

[Dave Foster]

@Phillip Beatty, its not uncommon for a lender to untether a property from a group financing in exchange for a partial paydown.  So your plan to sell two out of three and then refinance is pretty sound - especially if the last property standing is a tuna that deserves keeping.

Both @Ben Freiman and @Jimmy Murray have the same great idea.  You've got significant depreciation recapture and probable capital gain on these two first sales.  that could be used to purchase more real estate using a 1031 exchange rather than recognizing the tax and paying the gain.  Each dollar of deferred tax could be buying you $.10 of income into your pocket (may not sound like much at 1 dollar of tax savings but try 10% of $100,000 as additional annual income courtesy of the tax deferral of 1031).