Options to sell / liquidate residential portfolio

[Michael Ashley]

After many years of residential investing, I'm looking to 1031 exchange my residential portfolio into 1-3 NNN/triple net commercial properties. (finally, time to retire)

I am trying to identify and rank my selling options to achieve the following:

1. Minimizing capital gains/recapture taxes by getting as many properties into a 1031 exchange as possible. (Taxes would be $200k+)
2. Minimizing commissions to whatever degree possible: at 6%, fees would be $140k+.
3. Getting maximum selling value
4. Not disrupting my tenants and current cash flow

Below, I have ranked (from best to worst) what I believe are my options for selling. Am I missing any options? Would you rank them differently? If so, why.

1. (Best) Listing all the properties on BiggerPockets: Pro's - No broker commissions, good chance to sell all properties together
2. Listing properties on Zillow (FSBO): Pro's - lower commissions, potential to sell all properties together
3. Listing properties with Flat fee Broker on MLS: Pro's - higher price, benefits of MLS
4. List all properties with commercial broker (Likely paying 6%): Pro's - benefits of MLS and access to commercial broker's network
5. (Worst) List all properties with residential broker (Likely paying 6%):

Portfolio characteristics

• 16 Properties / 17 Units / Total value about $2.4 Million 
• 9 houses in the same class B-/C+ neighborhood (all renting above 1% rule) (
• 1 luxury type Condo in class A neighborhood (not renting anywhere close to 1% rule)
• 2 houses in different class B+ neighborhoods (1 renting close to 1% rule, 1 not close)
• 1 duplex in class A neighborhood [best public school in Columbus] (not renting at 1% rule, but probably could if marketed well)
• 3 houses in same class A neighborhood (not getting 1% rule, and likely couldn't)

[BJ Everson]

Selling Option:

- Provide owner financing on the whole portfolio. That way you sell all together and maintain income (time to retire comment you made). 

1031 Alternatives:

- This wont go with my selling option, but DM me if you would like to talk about Opportunity Zones and how that saves on your would be capital gains as well as re-invest your proceeds.