Looking for next moves for long term SF rentals in the Austin and San Antonio areas

[Scott McGadden]

I'm looking for options for possible next moves for one or all three of our single-family rental properties in the Austin and San Antonio areas. They have low 20% ltvs and have market values in the ~350k. A local Property manager manages them. We've owned them for 20-plus years but the recent property tax increases have negatively impacted our cash flow as have major repairs such as roof replacements, AC units, etc. We're looking for possible next moves including doing a 1031 to a lower prop tax state into a couple of newer SF units or possibly a multi-family opportunity. Or cashing out and parking the money for a while. Unfortunately, we live in California so we would have to pay significant capital gains if we sell.

[Jasmine Williams]

Hey @Scott McGadden. This is a common issue with investing in existing & older homes. I talk to my investors about this pretty often, especially if they're first time investors. It's something people rarely think about, talk about, or admit. Typically, you'll want to get out before you hit major repairs or uncomfortable cash flow. But, since you're already there, you may definitely want to look at a move. My suggestion would be to look at turn-key rental property options in a developing area with low entry costs. Small multifamily, up to 4 units (at least to start), then graduate into larger investments as your portfolio performs positively. B2R is typically especially good for this. Capitalize on consistent cash flow & appreciation, potentially tap into equity at year 5-7, get out & re-invest between year 10 & 13. Definitely 1031, as long as you are eligible. We are in markets now that are doing just that. Feel free to connect with me. I'm an open book and I'm happy to share, or even just answer general questions.

Also if you do end up selling the properties, please shoot them my way. I have investors & buyers in the area. I'd love to see what you've got.

Hope this helps! Happy investing.