Exit strategy

[Kevin Nichols]

So...I just started REI in late 2014 and have 3 "C" properties that cash flow well, but are in "OK" areas of my town. I have a few landlord friends in town who own 13 and 18 properties....they are in their mid-50s. They are trying to sell their properties due to headaches and just getting out of the business.

I looked at all those properties and most have a lot of deferred maintenance AND they wanted retail prices for them. (Every landlord thinks their property is worth their weight in gold! :)

But...my real question is....I'm 41, and I would like to have 8-10 properties....in the next 5 years or so.....but what's the best exit strategy when the time comes?

I expect to retire around 55 to 58 and I'm OK to maintain the properties now...but what is life changes and REI exit is needed?

What's the best way to properly "plan" for an exit?  Maintain the homes well? Buy in "B" neighborhoods (there are only a handful where I live and inventory sucks.)

Is it best to have a portfolio sale or sell off individually?  

Truly...I love REI now and my tenants are pretty low maintenance, but the properties I have currently are definitely properties that only other landlords would want....so I'm trying to plan accordingly and if I need to pivot a little to other type properties, I much rather do that now than later.

[Carlos O.]

Can someone explain to me why older people want to sell the properties they worked so hard to pay off? 

It seems to me what they really want is to cash out and unload all the deferred maintenance onto someone who doesn't know any better. If the properties are doing well, why not just hand them off to a property manager and continue to live off the cash flow?