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Updated over 1 year ago,
Want to sell 1-3 of my single family rentals, but where to put the money?
Reason for selling:
Property 1: The area has declined, it's more and more difficult to find quality renters although it is currently rented, it sat for about 8 months recently, only day care scammers wanted to rent there, and it has an under ground oil tank for heating that makes me nervous. PLIA insurance is good for 60K. But I wonder if I'm better off not registering, as they may then come out and inspect it all the time. Equity in this is about 400K. I did a cash out refinance 2 years ago to buy more properties.
Property 2: HOA has been driving me nuts for nearly a decade and is getting worse and worse. They replaced the property management company and things improved, then suddenly a year later they came back...now they are even WORSE. Equity in this is about 400K. I did a cash out refinance a couple years ago to buy more properties.
Property 3: Nice area, but the kitchen and bathrooms need an overhaul. It's not difficult to rent the place, but I can't rent it at market due to the outdated kitchen, etc. Equity in this is about 300K.
If it wasn't for the rates, I'd sell and 1031 into other properties, but that's a non starter for the next few years to come due to rates. If I could, I'd use the proceeds to buy properties in cash, but the 1031 rules debt replacement rules stop that unless, again, I just replace the cash I have to replace the debt. I don't want all my eggs in real estate.
What can I do?