Should I sell my paid off renovated rental house or refinance ,1031 or rent again.

[Ed Waggoner]

Hello, I own 40 rental houses in Richmond VA and have been self managing for 25 years, they are all paid off. My son now owns a management company and manages all my properties.In the past years I have done nice 30k to 50k renovations on existing homes and put them back on the rental market with great success. My contractor is now doing a total renovating (May, June, July) to one of my houses I bought 25yrs ago for 35k, rented it from $700 to $1300 in those years with 3 different tenants. My contractor took down all the sheetrock, walls, floor joists, sill plates etc..(house had water damage).The house will be totally brand new inside and out, 2 zone HVAC, all new wiring with 200amp, all new plumbing. Plenty of new closets, roof, windows, vinyl siding, all new doors etc.. Open concept, 16x16 deck, large front porch. 2 car detached garage renovated also. 4 bedroom cape 2.5 baths. Total renovation cost will be $125k and will pay cash. The house will be worth $400k in city of Richmond Va. It will rent for around $2,200. Should I rent it out or sell it and do a 1031 exchange for maybe a down payment on a small apartment building or another investment property or just refinance it to get my renovation cash back? All ideas would be much appreciated. Thanks in advance

[Guy Yoes]

I am 62 and have a mix of multi family and sfr’s. Like you I also want to keep decent income but don’t want to handle the day to day issues. I am working on getting my daughter and her husband to handle the duplexes (six on the same street) and my will manage the sfr’s. Most all of our properties have 1031’s.  We also plan to pass the properties do our children.  
all that said I am retired and wife will be soon. We have enough to enjoy our time together and travel several times a year 

I think you are going to do just fine. If you decide to go to apartments will your children still manage for you?

I wish you the best in whatever you decide.