getting rid of toxic assets

[Steve M.]

I have been investing for 10 years - learned a lot, but made mistakes. I'm now looking for answers to a complicated problem.

Properties are in mostly in VA. I'm Active duty military - 22 years and have been transferred out of the area.

I have 10 buildings; 3 SFH (my previous residences), 4 duplexs (low income), a 4-plex (low income); a 12 unit apartment building (low income); and a vacation chalet (daily rental)

* I manage the SFH myself - no issues good tenants, low repair cost and posituve cash flow.

* Vacation Chalet - negative cash flow, slightly under water (due to HELOC I used to float low income properties). May short sale soon.

* Others having significant issues in the last few years, neg cash flow, underwater, deteriorating etc. Caused by a series of bad PMs, bad contractors, bad tenants. I have fired 3 PMS over the years - the last PM stole nearly 75K - court case pending.

In June I decided to get rid of all the low income properties (except 1 duplex that has great cashflow for years). Working short sales now. I have had contracts on 3 along with bank approved prices - two buyers have backed out at the last minute and I'm waiting to hear from the buyer on the 3rd. No offers yet on the others. I have received a second low ball offer on the first house and have resubmitted to the bank. I have a attorney working with the banks for approval.

I stopped making payments on those that I'm short selling to trip the bank requirement for missed payments. 5 months behind on the 4 plex; 2 months behind on 3 duplexs (may pay next months to keep from going over 120 days); 1 months behind on the 3rd duplex. The 4th duplex and 12 unit building I'm current because they may be regular sale. Current on all others.

Over the past years I have drained most of my savings (I have 28K left). I;m lucky because I have a good job and will have retirement, but need to eliminate the toxic properties.

My current low income PM is doing OK - I get enough rent less her fee to cover about 70% of the low income mortgages - but they have to go and is a slow drain -plus stressing me out!

Obvious solution is short sale but I don;t know if this will work before I run out of time and money. I don't have the money to make major repairs or upgrades for new tenants - so that is not an option. So what are my other options? Do I file Ch 13 and keep the good properties that have equity and cashflowing so I have something for retirement? My other personal debt is manageable - and I'm not behind on any of my personal debt...it just these5-6 bad properties.

Suggestions?? Thanks for taking the time to read.