$1 million in equity and "only" making 56-64k a year.

[Casey Miles]

Hello Everyone,

I think it's time for a change.

I really want to keep my post on topic. If you have questions or want to debate CAP rates, cash on cash, etc. please shoot me a message and we can go from there.

A little history. I started investing in RE in roughly 2009 in the Phoenix market as that's where I'm from. I bought property that according to me was a "deal" at the time. I literally have property spread out all over the Phoenix market.  I didn't give much thought into capitalizing on my resources by keeping investments to one area. I have roughly 10 properties equating to 18 residential doors and 4 commercial office spaces. I've always had the goal of buying more and building my wealth via RE. Keep in mind that wealth can be $ or wealth in time. I don't need to be "rich" in $ but I want to have enough to support my current life style which I think is modest for my wife and I AND not have to work for The Man any longer (I still work a 9-5)

As my post indicates, conservatively after commission, etc. I think I have +/- $1mm in equity not including my personal residence. I make roughly, after PITI, maintenance, vacancy and CAPEX roughly 56-64k a year and that's with me managing everything. If I had a management company take $20k away from that. Now I know I'm gaining in equity every year due to growth so obviously my IRR is better than what I'm portraying. However, for right now, my money isn't working hard enough for me. I currently still work full time AND manage all my RE. When I started investing CAP rates were @ 9-10% and COC was 20-25%. I know I'm not going to see that now but this 3-5% is for the birds.

Time for a change! I think what I want to do is sell everything and 1031 the equity into 1-2 Class B/C apartment buildings. I want to stick to apartments, especially B/C properties, because I feel it's a safer investment during economical downturns. This seems really tricky because of the timing of selling everything. I guess I can make all the contracts 1031 contingent so they all close fairly close to one another? My goal is make a cash on cash of 12% AND have at least 3% year over year growth in property value (20 year average) AND not terribly risk my initial investment. Am I trying to find a unicorn? Syndication makes me uneasy just because it seems like you could lose everything? At least if I buy the property myself (or JV) I still always have the property if things go south. Plus I'm told I can't 1031 into a syndication.

I'm open to suggestions and brainstorming. I learned a lot from this forum and here I am coming back to the well. 

Thanks in advance!

Casey