Exit Strategy for Multi-Family Investor/Landlord

[Mark J.]

Hello All,

I'm a long time member of the site and learned a ton from the forums and podcast during my initial phase of investing in RE about 6 years ago.  I ended up acquiring 5 properties/10 units from 2019-beginning of 2021.  I stopped buying because the market became too expensive and competitive in my area at the time.  I also self manage from about 1.5 hours away and was working a full time job, so it became quite overwhelming especially during turnovers and renovation projects.

Anyhow 5 years later and I'm still self managing from about 1.5 hours away.  I've always considered getting a PM, but it's hard to give up that 8-10% ($1k/month) especially with everything that I hear/read regarding investors' experiences with PM, also there is a lack of options in my area. 

I'm at the point where I'm kind of over dealing with tenants/all of their problems and the constant distraction.  I have other projects and business' I'd like to pursue and the rentals are a constant distraction and time suck.  Not just the landlording part but all the bills, bookeeping and paperwork that come with it and the constant thinking of improvements and issues that need attention.  The cash flow is ok on average.  Factoring mortgage pay down, appreciation and tax benefits make them pretty solid investments. But it is a job and mental drain/distraction- there's always something.

With all of that said I'm trying to formulate an exit strategy. My thought is rather than just selling and being done with it I will try professional property management first. If that works out I'll hold for, maybe another 5 years and then look to exit the properties, ideally 1031 at least 1 to some kind of vacation/STR/retirement property. If putting under PM doesn't work out I'll probably begin to slowly sell them off. I'd love to 1031 into an apartment building, commercial or something that is a little less hands on, but I have not seen anything that would make sense in my area. I think I'd have to go long distance to figure that out and not sure I want to do that.

Anyhow hoping to hear from others who have been at this point in their journey and hear what worked for them.   Whether it's someone who sold and regretted or was elated or finally hired PMs and it went well or didn't or created better systems to self manage, etc.  Kind of just wanting to get some perspective, though I know everyone and their situation is different.

Also I'm will to share more of my journey and info, just let me know.