Keep Medical building or sell?

[Craig Jace]

I have a medical building in Los Angeles 

Had it for 15yrs

Would like to retire soon and looking for best cash flow 

Owe 200k

Rent is 7000 monthly

However property is worth 1.7m

Would like advice for cash flow

would it be prudent to sell and invest in multiple residential properties outside of California for more cash flow ?

[Joel Owens]

Dave maybe Greg is thinking of an UPREIT.

Craig reached out to me and we spoke.

The TIC model can be a nightmare when every investor gets a voting share. Try to get them all on the same page for refi, cash call, sell off,etc. Some smaller TIC's of just a few people can work.

DST's are heavily laden with fees to the investor but have their place with poor 1031 investor planners or someone with a tiny amount to invest say 100k to 300k. In those cases the 100k to 300k they own a slice of a much larger property in an area they could not buy and purchase on their own. Additionally an investor could use up additional fractional money left over from a 1031 to avoid boot.

By owning directly an investor has control. Everything has pluses and minuses.

Personally I like an STNL guaranteed by strong parent corporate guarantee  or 2 to 3 top retail center MTNL with national tenants backing the leases. 

I am evaluating his situation. I would rather an investor own a 3 million dollar property at 50% LTV in a strong suburban to urban core location than own a fully paid off 1.5 million property in a weak suburban to rural location. I believe in the dirt long term and area more than purchase price level to assess risk.