To Sell or Not to Sell...

[Matthew Lessard]

Hi All,

My tenant of 3 years has given me his 30 day notice at a rental property that I (and two partners) have had for 7 years. When I first bought the place I was living in it and renting the rooms out. Things changed and I ended up moving out of state and continued renting the property. Admittedly, I did not know much about real-estate investing at the time and just bought the house to live in with no plan to leave. It has worked out well from an investment standpoint (decent cash flow) especially considering the initial intent was to own and live in the home. 

I have been education myself on real-estate investing for some time now and have a completely different point of view. Unfortunately, my partners don't see eye to eye with me on certain investment strategies and for that reason I think it is best to sell so we can all move on to other things.

Does anyone have suggestions on a graceful exit? What I mean is, is there a way to sell it without the money we make getting taxed multiple times (sales tax, capital gains tax, etc.)? I would love to 1031 it into another property but that doesn't disconnect me from the current partnership.

We also considered a cash-out/refi and then selling, but I am not sure if that makes sense. 

We have equity in the home and it is a great time to sell. Any insight is much appreciated.