Advice on Next Steps (2018): 1031 out of CA to IN/OH - SF or APT

[Denise M. Tschida]

This is my first post.  I am in my early 50's and look to retire from education in 8 years.  My goal is to acquire $5000 in passive income from rentals in 8 to 10 years.  I have 3 rentals in Southern CA purchased in 2011 which produce positive cash flow but more importantly they have double in value.  Rental #1:  Purchased 90K, Current Value 200K.  Rental #2:  Purchased 155K, Current Value 315K.  Rental #3:  Purchased 190K, Current Value 355K.  

After listening to Clayton Morris and Bigger Pockets Podcasts over the last 6 months, I believe in order to reach my goal I will need to 1031 exchange to the Midwest, namely Northwest Indiana, Indianapolis, or Ohio, where the markets will allow greater passive income and I have family who live there.

I am open to turnkey property or to create a team to rehab a property for long term rental.  It can be single family or Multi apt complex.

I would love to hear from you about my next steps.

[AJ Singh]

@Denise M. Tschida

rents are rising slowly in southern ca anyway. Midwest and Midsouth look attractive but property capex is not cheap due to weather factors.  Big cap rates are only in iffy neighborhoods which are being billed as turnkey to out of state investors. Take a trip to those areas and check the neighborhoods yourself before doing a 1031.

My two cents