Seeking advice for diversifying my real estate portfolio (3 duplexes in MO)

[Kevin Zhang]

Hi everyone,

I'm an beginner real estate investor with three duplexes in Missouri. While I've gained valuable experience, it's come with some challenges.  While they've provided decent cash flow, the recent maintenance demands have been significant, with one tenant move-out leading to a $20k+ rehab and new appliance/HVAC costs.  So altogether,  I spent $60k on maintenance on the 3 duplexes,  that includes appliances, windows, and even a roof replacement. This experience has led me to re-evaluate my investment strategy.

Therefore, I'm considering selling my Missouri properties and using a 1031 exchange to invest in new opportunities.  I'm considering diverse options for reinvesting the proceeds ($200k+) from a planned 1031 exchange and am open to various strategies:

1. Las Vegas/Reno: These markets offer potential for both cash flow and appreciation, but I'd need more information on their suitability for mid-term rentals and current market conditions.
2. BRRR strategy: This approach could be attractive for value creation, but I'm hesitant about out-of-state management and require a turnkey or experienced team to handle renovations.
3. Other locations: I'm open to exploring other markets offering favorable investment opportunities, particularly turnkey properties or areas with manageable maintenance requirements.

My preferences:

• Turnkey properties: Minimize management headaches and focus on cash flow.
• Limited appreciation: While some appreciation is welcome, cash flow is the primary priority.
• Shorter-term rentals: While Airbnb isn't an option in my current area, I'm open to exploring short-term rentals in other markets.
• Avoidance of major renovations: My recent experience has solidified my preference for well-maintained properties.

Current portfolio:

• 3 duplexes in Missouri (mixed performance)
• 1 single-family home in Memphis, TN (turnkey, positive experience)

Questions for the community:

• What are your thoughts on Las Vegas and Reno as potential investment destinations?
• Are there other markets I should consider based on my criteria?
• Can you recommend any BRRR specialists or turnkey property providers for out-of-state investments?
• Do you have any general advice for diversifying my real estate portfolio?

Thanks in advance for your insights!