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Updated 1 day ago on . Most recent reply
How to replace cash flow
Considering selling a half dozen single family homes that cash flow well. Maybe $330-450k capital gains if I don't 1031. None of the passive 1031 things look terribly reliable to me (DSTs). What should I be thinking about doing with a half dozen chunks of money if I would like to replace the cash flow with different cash flow that won't urgently call me at 9pm Friday about something that's been broken all week? Current return on equity about 4.4%.
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1) Hire a PM. I have NEVER received a call, much less outside of normal business hours. I get a text for non-emergency repairs over $250.
2) Your return on equity is horrible. If you want to get out of real estate you could get a better return with a CD at a bank. 100% guaranteed, 100% safe
3) You want higher returns and higher risk? Invest in funds that lend hard money.
Your problem is much easier to solve than a real estate investor making 10-15%. Pick a solution and move forward. Prime selling season starts in a month.
Ps. You could offer seller financing (preferably with 20%+ downpayment). This would increase your returns and lower your taxes by spreading the gain over several years.