Then take that cash and add that to the 1031 proceeds of the other one and use them together to buy a few properties - maybe one for cash and a couple with leverage and get yourself into a good defensive posture where you have a free and clear property with no market risk and leveraged properties you can blend returns on.The  sector I really like late in a market is student housing at residential state university towns. 

A compounding factor was I vacated the property at the end of the typical military move cycle and as such there wasn't a new batch of military personnel expected in for another 5-6 months.Brenda Layman & Steve Babiak, I can't imagine they are really making any money at all right now.

And you can take out the pay outs or compound them. 

@Bryan Harvey,  You've got 27 years of compounding deferral already in the bag. 

If you're wanting to stay in real estate for 20 years then an upreit loses you 20 years potentially of tax deferred growth and compounding of those tax deferred dollars.Everyone's got an opinion on DSTs. 

But there are other. ways to turn your portfolio more passive while still keeping the compounding of the deferred tax. 

Not sure who I am dealing with as the payoff letter went to AAG Calif. and the payoff came from FNC title in Maryland.In reflection, the time between the supposed closing and getting the money compounded by the total non response to phone calls and emails along with lack of supporting docs bothered me the most.

Very savvy political leadership.The secured and pumped up the Military BasesEnticed Defense Contractors with cheap land and low taxesCut education/public sector wagesAllowed in cheap undocumented workers from Latin America. 

Make sure your attorney (not CPA) explains this to you and to make sure you have a defensible position if the transfer is challenged by any of your creditors.

What the defense is attempting to do is bring about the idea that there is no debt at all to collect.