Looking for Some Financial Advice

[Wade G.]

I'm at a crossroads and I would like some opinions please.  I have been a landlord for about 12 years and I think I'm done.  I no longer care to make small repairs, answer phone calls, or go through the tenant screening process...especially the tenant screening process.  I have found that the longer I'm in this business the more picky I get when picking tenants and its causing my houses to sit vacant longer.  As I get older I want my weekends and weeknights free and not have to deal with turnovers.  Turnovers are very discouraging, its discouraging to see the fresh paint, carpet, etc turn into used condition.  Even when tenants maintain the property the usual wear and tear is discouraging.  Getting to the point of this discussion I have decided to either refi the properties, get cash out, and turn properties over to a management company, or other option is to just sell and pay the tax.  Probably would not 1031 because I don't want more houses (not sure where to put the money yet). 

After either selling or refinancing the next question is where to put the money.  Refinancing would give me about 120k, selling would give me about 140k.  The safe place would be to pay off my primary house mortgage of 137K @3.7%.  That would give me $700 month tax free back into my life from the 137k.  Horrible place to put the money but there is some peace in not having a mortgage.  I know its a terrible, terrible, idea but it somehow simplifies things in my mind knowing that the sacrifice and work over the past 12 years did amount to something.

Other choice is to invest the money (putting it at risk possibly) and surely earn more than the 3.7% but it needs to have growth and income.  Right now my thought is to invest the money into a syndication.  I don't want to pick up a hammer or screen tenants ever again.

After posing this question to the wife she believes the best scenario is to refi the houses, hire a property management company, and invest the money into a hands off investment.  The houses will not cash flow very well but they will not be negative and I will still have them for the future appreciation.  Many people do not count on appreciation but I do.  My houses are in very stable nice neighborhoods and I think 2-3% appreciation is a safe assumption.  The negative to this option is I would have to manage the PM.

What all this boils down to is I am becoming more risk adversed and placing more value on my time but I still want to be involved in RE investing.  Just seeking opinions from anyone willing to read all this.