Have four properties, what next?

[Jack B.]

So I own about 1.4 million in real estate between four properties, single family homes. It seems like the next step would be to turn a little into a lot by starting to 10-31 exchange some of the earlier properties in my portfolio that have appreciated the most toward an apartment complex. 

I've had a few people mention that this is a lot of work at least initially, but it seems like the next logical step. Otherwise, my options are to hold, sell and buy two single family homes with proceeds from each house, or sell and put the money in index funds.

I like the apartment complex because of economies of scale, and the fact that I could always move into a unit and "retire" while living off the proceeds of the rent.

[Bill Exeter]

You can also look at a Reverse 1031 Exchange.  The Reverse 1031 Exchange allows you to take all the time that you need to locate suitable replacement property, buy and close on the new replacement property, and then you have 180 days to sell and close on your current relinquished property. 

Reverse 1031 Exchanges are more complicated and have higher costs, but can eliminate most of the risk in a 1031 Exchange.