Buy and Hold or 1031 into larger building

[Brendan O.]

I have some properties in an average neighborhood that i developed into large apartments some with five, six or even seven bedrooms . Some are rented by the room so the work involved is becoming too much. I am a buy and hold investor and undestand the long term benefits. I don't want to look back and say damn i wish i never sold anything. 

My questions is If i sold all  these properties and done a 1031 into a single building of approximately the same total value in a nicer area would that make sense? It would be far far easier to manage. 

[Dave Foster]

@Brendan O., the 1031 will allow you to go anywhere in the US and into any type of investment real estate. So the metrics you're probably looking for is the cross point of ease of management on on axis and income on the other access. That's going to be unique to you. Many investors at this point make their move into commercial single net or NNN properties. Others may not be as comfortable with that like @Scott E..   You like to buy and hold.  But I would also spend some time thinking about sector and type not just location.  

If you 1031 you won't be able to go into REITS directly. A move into a REIT requires a process called a 721 exchange. Once you have moved from the real estate into the reit you no longer own real estate. You own a security. So, many of the benefits of real estate ownership are no longer available. A high price to pay for someone with a buy and hold mindset. Certain TIC syndications and Delaware statutory trusts round out your available real estate options