Strategy at End of 27.5 Year Depreciation

[Ben Sears]

I was having a conversation with a partner on some of his SFR properties in regard to depreciation strategy. He owns three SFR with a monthly cash flow of ~$2600. Two of the properties are paid off and one has a mortgage. All are nearing the end of the 27.5 year depreciation cycle. So BP, I ask the experts what are your strategies with regard to taxes and depreciation? Does he sell the properties and 1031 into something with more cash flow and depreciation deduction or keep the properties and maintain his cash flow? What are the pros and cons to both?