How to re-invest funds if I liquidate properties

[Felipe Guerra]

Hello my name is Felipe and I'm new to big pockets -I want to get comments or investing ideas on the following. I bought my first multi-fam rental property in 2013 for $465k -I got a 30yr fix loan with 25% down. This property had a 20% cash on cash return since I bought it. I bough a 2nd rental on 2014 for $559k -again with an investment prop loan putting 25% down. This property had a 14% cash on cash return -lower because prices had increased. I bought a 3rd rental a duplex for $400k with same 25% down 30 yr loan -cash on cash return of 8% prices continued to climb therefore lower cash on cash return. At this point a have about $1.2M in equity and I was thinking on liquidating all properties to get the $1.2 and re-invest; however based on how much property cost has climbed I'm not able to get a good return on my investment; if I put the full $1.2M for a down payment the mortgage will be as high as my rents 2) if I buy cash a $1M property it would be around 7% cash on cash and would not get as much equity on property value (also I would not be able to use a 1031 exchange paying cash). Would you have advise on how could I re-invest my available cash or if I should just keep my properties as they are and keep saving for another downpayment or pay-down loans. Properties are located in San Diego CA and the Income I get after all expenses and prop manager fees is aprox $50k / yr. Please let me know if you can help and/or if I left out any information. Thank you! Felipe Guerra