In 2009, I bought a townhouse in California for $590K.Today, that house is worth about $1.4M, and I owe $370K on it.It's bringing in $4,500/mo, but after $2,430 mortgage payment, $200 HOA, and ever-increasing property taxes, my ROE is really quite pitiful.Furthermore, my tax situation in the country where I live (outside the US) allows me to sell the property without being taxed here on the gains, but only if I act in the next few years.Thus, I've decided to 1031 the property.Now, I'm looking for suggestions, guidance, and experiences from folks who've done something like this.A few criteria:I care about cash flow, not appreciation, at this pointI visit Phoenix and Newark a lot, so I'd considered those as markets, but I'm not sure how to evaluate themI was thinking to buy a large apartment complex... but not sure if that's the right move as opposed to multiple properties.I have considerable amounts of cash that I can invest into the new property if needed, though I might just invest that into other projects separatelyI'd like to move this new property into an LLC to help protect my other assets, but I have heard that would be very challengingAppreciate any thoughts or guidance anyone can offer!

The purpose of the Limestone is to install it on the exterior steps of a property that I am renovating.

If you have been consulting with CPAs, that's probably a great question to ask them, but I would find one you are comfortable with now to find out how they suggest you take title to the property, whether there are any tax advantages to an entity as opposed to taking title individually, whether there are any tax benefits to certain home improvements, certain tenant income reporting, etc.

So our HOA general liability policy covers the exterior and interior of our townhomes, excluding personal property.

If i move to a market to start up, i'd rather it be a fun market to live like Nashville opposed to some of the other cashflow markets with cold weather and no big draws :P

@Amber Scavone the only thing a one-family has in common with a 2- 3- 4-family is that they are considered residential property as opposed to 5-fam and up are 'commercial'.   

I always encourage newer investors to meet local lenders in their own backyard and go that direction as opposed to online providers you'll never meet. 

You are simply shifting your management responsibilities to a single issue as opposed to multiple separate properties.Being a active hands on landlord requires not only specific skill sets but more than anything else requires the desire to self manage.

Once you’ve read enough T12s and understand avg expenses per door whatever market you’re in, you will better understand your proforma and how the property would operate You can simply take out the perceived capex line items, then categorize as Capex/Major Repairs (roof replacement or repair, re-plumbing, repave parking lots, ac, electrical, interior & exterior Reno) Expenses (taxes, insurance, service contracts, management, utilities- wst, turnover, legal, maintenance, G&A, payroll) Now take the income minus expenses.

Looking for some recs on a good insurance co. ideally local - but I'm not opposed to bigger guys.