looking to cash out of CA and invest for Cash flow

[Terri Sarappo]

I am researching markets to convert my equity in Oakland property into Cash flow. Do you have  any suggestions of great markets? I live in Sacramento  and would prefer local  but open to other markets. I am retired and debating if I should do a 1031 and carry my loan of 240k or just take my equity and buy for cash. This would be for cash flow and a diversified asset. My time frame is later in the year since since my house is still occupied and I will need to give them time and do some repairs before I sell my house. 

thanks for your help. I have been lurking here for 8 years netting passive income and appreciation so now it time for next stage. 

Terri

[Steven Ko]

PAUSE. You are retired. It seems like you own one rental in Oakland, CA? I know you want more cash flow but let me remind you, you are taking on some serious risk. The housing stock is much different when you leave CA, none the less if you leave the Bay Area. You have minimal experience with oos. Don’t just think your going to find a rock star core four. If you browse the bp forums, you can easily find stories where contractors have ruined projects for their client or the stories about tenants from hell. One major expense can wipe out cash flow for the year like a roof or hvac. Even with a property manager, you’ll have to manage your property manager. A year down the road, the perfect contracted you found oos might move. Then you need to find a new team member.

It’s just just step 1. Buy house, step 2. Profit. There’s a lot of things that could go wrong and they can be easily fixed but might need a time commitment which I don’t know if you want to take on during retirement. Something much more passive would be my speed.