Should I Sell for a $1M profit

[Steve Stuart]

Here's what I've got:

Decent size portfolio (60 units now) .... most MF buildings, all long term rentals but most zoned short term and less than a block to the beach. Intentions of growing it to 100 in the next 24 months... all in the same general area.

Most free and clear except two that I pulled equity out on for other purchases. They're not listed, I'm not really interested in selling, though if I did - I'd really want to sell the whole thing.

Fast forward: Recently I've had people pursue me to buy 2 of the properties on the same block - 24 units. The 2 I have the mortgage on. They keep upping their price and we're at a number that reflects about a $1M profit (bought and rehabbed both at the end of 2016). However, because of the mortgage (then taxes, recap dep, etc) I'll only walk away with about 3 years of what would be attained through cash flow. 

Benefit? No debt on a portfolio of 36 units. 

Pitfall - can't 1031 because of the note payoff, loss of deductions, etc 

- Not really enough cash left over to sink into a bigger project.

-These are the two best properties I have which could be used as leverage for a higher overall price for the portfolio. 

What would you do? 

- Lock in the $1M profit?

- Lease Option it? 

- Owner finance it (though they'd have to put down 60% to cover outstanding mortgage- which they will. That won't leave much extra interest income because of how "little" is being financed)?

- Don't sell it?

Thank you in advance for the advice!