Sell one property per year in retirement

[Jerrad Shepherd]

I have a decent sized rental portfolio made up of sfh and duplexes and have often thought about selling one a year once we decide to fully retire. I realize depreciation recapture and capital gains taxes would need to be paid upon selling but that might not be the end of the world either. Have any of you taken this approach and how has it worked out for you? I have imagined doing this over a 25 year period while keeping another 10-20 units to pass down to my children at a stepped up basis upon my death. The average sale price of the units would be roughly $90,000 and most if not all of the way through depreciation schedule as well. Also figure on purchase price being 1/3 of sale price as well.

[Chris Szepessy]

If you (will) own them free and clear at the time you fully retire, you could owner finance some or all of them instead of selling them outright. I'm not sure how the depreciation recapture works with that, but you could at least spread out the capital gains tax. I'm not sure what your goals are after retirement and what you plan to do with the money, so that could play into what others think is a good option/idea.