Good stuff to think about, thank you Sebastian.It's cool to see extra replies from time to time on this post as I continue with the ideas.It's interesting, I looked into different DSTs and had conversations but just didn't feel comfortable with what I felt was a lack of control or ability to really know the operators and properties.I also kept running the numbers and just couldn't make 1031s into other properties make sense with the new interest rates compared to what I have now. 

Labor costs are high in NYS so controlling your variable expenses is key.

If it is a term lease, the lease terms will control, to the extent they do not contradict state law.

To answer your question about raising rents it depends if it is subject to LA Rent Control or not. 

Termination of a month-to-month tenancy is typically controlled by state statute.

Also if they default on the wrap its easier to unwind and gives you more control.. either way though your on the hook for the 100k.. and if they dont pay you still have to pay on the 100k while you foreclose on your wrap note..

Focus on what YOU KNOW, leverage your team, and control your exit strategy.

Use this turnover as an opportunity to research and find a manager that can stabilize the property and take control of the situation so you can focus on other aspects of life.Remember: cheaper doesn't mean you'll make more money.Start by going to www.narpm.org to search their directory of managers.

Then I realized that the rent was about $700 below market rent and my expenses were getting out of control (taxes, insurance, mortgage, repairs) so for the past 8 years I was slowly increasing the rent every year.  

Values drop, sometimes drastically, rents go down as quality of tenant declines; cost of operstimg properties increase, and governmental interference, especially in the form of rent control, can slash values and profitability severely.