Best opportunity for 1031 money?

[Greg Schow]

I have some 1031 money to put to work (about $2M). We won't close on our sale until end of January, so we have till around mid March to identify properties. We've looked at many options and prioritize them accordingly:

1) We'd love to invest in private deals (multifamily, self storage, mobile home parks). Due to 1031 restrictions we can't usually do syndications or Funds.

2) Individual rentals - We could roll this into 10-20 individual home rentals (love the appreciation, like the cash flow, hate the complexity of 10-20 individual homes/insurance/loans etc.)

3) NNN leases - This may be the simplest option to park a lot of passive cash, however with approx 5-6% yields it seems like the market is undervaluing risk in retail/hospitality/restaurants (where most of the NNN lease deals reside).

I'd love any other thoughts people have. We're open to splitting the cash between a few of these strategies. Thanks for the suggestions!