So you have 4 million in equity or value? How much is your capital gains tax?

Let's say you sold them all-- had to pay the 20% capital gains--leaves you with 3.2 million to invest.

You say you gross 300K in rent-- what is the NET?

If it is 200K ---you would need a 6.25% return on the 3.2 million to equal what you are getting in rent.

Do you want to leave an inheritance or legacy? If so-- it may be better just to keep the property and let the inheritance take it at a stepped up basis (or the non profit of your choice as a legacy)

Lots of questions-- not enough information

You likely need some more intense figuring. What about the recapture of any depreciation at 25 percent? Capital gains tax? Best to get info on your situation from a tax pro.

Also, maybe consider just borrow against the real estate and leave it to whoever or charity.

You likely need some more intense figuring. What about the recapture of any depreciation at 25 percent? Capital gains tax? Best to get info on your situation from a tax pro.

Also, maybe consider just borrow against the real estate and leave it to whoever or charity.

You likely need some more intense figuring. What about the recapture of any depreciation at 25 percent? Capital gains tax? Best to get info on your situation from a tax pro.

Also, maybe consider just borrow against the real estate and leave it to whoever or charity.

You likely need some more intense figuring. What about the recapture of any depreciation at 25 percent? Capital gains tax? Best to get info on your situation from a tax pro.

Also, maybe consider just borrow against the real estate and leave it to whoever or charity.

Some here have done many more than me but I will explain and then you can do some research and it will lead to more questions.

You sell a property at a time and 1031 the sale immediately into a DST. It’s simple really but I would spread each property across a few different areas. It’s just a piece of a larger property. It could be retail, commercial, warehouse, professional or even a large apartment complex.

The real benefit here is your profits continued to be deferred. So you don’t pay depreciation recapture or capital gains.

I own a couple myself and plan to buy more but I’m just not quite ready yet. Now if I wasn’t trying to avoid taxes there are plenty of other options.

Your heirs will still get the stepped up basis but may not be able to get the funds immediately upon your demise. It could take a few years but they would continue to receive the payments until then.

I went through Kay Properties but I wouldn’t necessarily recommend them over anyone else. They all sell DSTs created by other companies. The fees are all built into the price.

There are basically two options. DST's as mentioned above, which avoids paying the tax, or sell it and pay the tax and reinvest in the stock market.

DST's will earn you around 5% on the 4 million (about $200K yearly income). Stocks will earn you around 8-9% with a moderately conservative investment of around 3 million you will have left after tax (about $240k yearly average though it can vary greatly year to year). Risk wise there are pro's and con's of each.

If you go towards stocks I would strongly suggest paying the financial guy (assuming he is a fiduciary) $4K to manage it. There are proven strategies to mix investments between stocks and bonds to significantly lower the risk of larger loss in down markets. If nothing else, ask him what he would charge to put the plan together so you can see what he can confidently do. They often will do that for very little dollars just to gain your business in managing the funds.

If you go towards DST's, find a good registered investment advisor so you know it is a fiduciary relationship. Ask him for his advice if he were to reinvestment once you sell.

Selling now might not be a bad idea timing wise.

I disagree with DSTs being your only options for 1031 exchanges.

- You can do owner carry backs and become a note person which works well if you are doing it with someone you trained.

- You can buy NNN or NN properties that are mailbox money.

- You can buy Gas rights on performing wells which is a bet that data centers are indeed coming.

There are many ways to "exit" the rental business, but most methods don't yield the seller (you) the most "cash out", instead you pay taxes and then invest the net proceeds, (around 60% of the total sales price), and then get a dismal return.

Years ago I wanted to buy my partners out. They owned 66%, the lot of them, and were old stiffs around 75 years old on average. I was only 45. So they all agreed to do 1 test property. We had known each other for over 25 years. We never had any issues before. But for them to carry back the 1st mortgage and defer their taxes was a foreign topic.

So I said that besides being a contractor, property manager and certified landlord, I am also an accountant, MBA and Tax specialist. So we worked to scenarios. One a cash sale. Two, a sale where they carried back the 1st mortgage.

If they sold me their share of the property for $500,000, their next cash out proceed would be around $300,000. Invest that in Stocks, Bonds, etc. and the average yield was around 5.5%. All fully taxable. So after tax they would receive around 3-1/2%, or $10,000 annually.

Bet,

4 mil, 20 doors is a small investment for one investor. You could have these sold in 30 days.

1% is the going rate to list with a realtor.

I am actively selling the properties I have held for 26.5 years. Depreciation recapture, capital gains, state and county taxes in total 37% in my case.

I sell, 1031 exchange to a DST for 5-6% on the total amount (your 4 mil), with not a single thing to do except spend the money they deposit into my bank account.

= $200k cash flow income PLUS appreciation as the DST property grows.

4 mil minus 37% taxes leaves me with only $2,520,000 to re-invest.

Stock market can be a good investment but it does not provide the cash flow to live on.

I’m trying to get rid of things that must be handled and renters.