Seeking insight on Delaware Statutory Trusts, RE exit strategies, passive investment

[Annette Homewood]

Dear Bigger Pockets investors,

I'm no longer wanting to be a landlord & am looking at exit strategies. My profit margins are struggling & the potential liability worries me. My rentals are out-of-state, have management, & are not in the best areas. An advisor told me about Delaware Statutory Trusts. I'm not an accredited investor but he said there are open DST's in which one doesn't have to be a millionaire, & so far he's the only advisor I've come across that has open DST's. Everyone else I've looked up deals with wealthy people only. I believe the minimum investment is still at $100k. Last I spoke with him, he had open DST's offering between 3.75-5.15% in distributions. I'm sure he'll get ongoing commissions - which are "baked in" already. As I mentioned, I don't know of any open DST advisors who will only take a flat fee at my level. But I would be happy if I were getting at least 4%, probably staying in the safer multi-family realm (as opposed to malls, hotels, offices, etc.) I would appreciate any insight anyone has to offer, as I'm trying to figure out my next move. My goal is to have passive income.

What I know about DST's:

They’re illiquid for maybe 5-10 years.

I will defer/1031 my taxes upon sale of my properties.

I will receive equity when the DST sells the properties, which I can then reinvest & continue deferring taxes, should I choose.

I will be able to factor depreciation recapture in my annual taxes.

DST is likely to be higher-class properties.

I will remove my liability & control from being a landlord.

What I don't know:

Will there be surprise fees?

Will there be extra fees cut into my equity upon sale?

Is there anything else I'm not thinking of that I should look out for?

I know everything carries some risk, but is this an overall, generally speaking, good investment? Or is there another avenue I may not know about?

I would appreciate any insights. Thank you in advance. This is kind of an important decision for me.

Annette