Well things are certainly changed over the last 30 years since I bought my first building. Many more tenants are not honest and have figured out many ways to get under the radar.Yes there are many good tips posted here how to better vet them, but I'm tired and don't want to keep doing it,.. These new government rules are horrendous compared years ago. Yeah, I'm tired, too much hassle these days. I want out but it also looks depressing to how much I have to pay in order to do that. There Is no way I I can sell them without real estate agent.and their fees,. I moved a few years ago to hundred and 50 miles away from my properties. Then there's the government's big tax bite.

1. Any kids that might want to manage them?

2. Any thought on whether to put them in a trust and have them managed by pros?

There's some ways to lessen the tax bite, but with the govt doing things , it's a gamble.

Here's one way that might work. Refinance every one to the max, turn it over to a pro mgt company and walk away. Let the mgt company deal with it all. Take your money and do what you want. If you can get 80 percent, compare that amount with what you would get minus real estate commissions and closing costs and what the taxes would be plus recapture of depreciation. I'd bet the 80 percent would put more money in your pocket.

A. 80 percent in pocket.

B Sale price minus

* Commissions 6%

* Closing costs Maybe 4%

* Repairs

* Concessions to buyer

* Capital gains tax (20 % or more)

* Recapture of depreciation (25 % of depreciation)

* Higher income tax

Even in a worst case where the pro management company completely messes up and the places go to foreclosure, your net MIGHT be better by taking the 80 percent tax free as a loan.

Have you considered a 170 sale?

If not s bargain top s charity, why not a 1031 into either a NNN property or into OGM rights so get a monthly check and no management. They will be having an OGM specialist at this years convention - the 1031 will prevent the bite from hurting now. But hey you pay taxes now or pay them later.

I've tried almost anything to avoid the wrath of Uncle Sam and the likes of California taxes too!

With Long Term Capital Gains at 20%, My State taxes of 13.3%, Recapture at 25% and the Affordable Care tax of 2.9% -- and try not to forget the Read Estate Commission of 6% and the 2% costs (Escrow, Transfer Tax, Title and stuff).

THEN THIS ALL ADDS UP TO HALF (50%) OF THE SALES AMOUNT!

So I've done instead:

A) Installment sales where I carry back the First Mortgage or sometimes a Second Mortgage of at least 30% of the sales price.

B) A 1031 exchange

C) A 1031 Reverse Exchange

D) Exchange up to a TIC (a fully managed Tenancy In Common)

E) Exchange into a Triple Net (NNN) property and have a property manager.

F) Exchange into a large apartment house with a resident manager and and offsite management company.

G) Convert Ownership to a company and sell out small percentages of ownership little at a time.

Keep in mind that a cash out refinance doesn't change the fact that you will pay out a ton of money: it only changes who GETS that money (Bank vs. Govt).

Let's say you have a million $ property and take out the max of 80% LTV ($800,000). First, you'll pay a lending fee of somewhere between $2,000 - $5,000 up front. Plus incidental expenses like title search, recording fees, etc. Plan on another $1000 for that.

Then you get "good" terms of 4% on a commercial loan fixed for 5 years on a 20-year amortization. So you pay roughly $32,000 interest during the first year. Less each year as the balanced owed goes down, but still a sizeable chunk.

The tax man always gets his bite in the end.

Right now, the 1031 is still possible. I don't know for how much longer.

You could try doing a two into one or even a three into one exchange and cut the number of rentals in half and get them close to where you are living now. You'd still have rentals, but they would be better rentals, which means the tenants are easier to deal with.

Possibly that would cut your stress down enough that you could tolerate it.

Ok gives me some things to consider,.and I will.Thank you!

But I'm turning 74 this month and not wishing to do 1031s.

Feeling like sitting on the rocking chair on my porch and not think about rentals anymore. Maybe go fishing and taking long walks and let tenants do what they do to other LL's

I'll have plenty of money, but not as much as I had hoped for.

"Another possibility for 2-3 of the rentals would be to sell them and 1031 into some sort of lovely vacation home. You could do vacation rentals for a year or two and after that, convert the property into our own residence or private vacation home."

"move to FL then sell"