Thanks for the replies guys! Maybe it would help if I gave you some more info on my situation and what I am looking for. I am reluctant to post this info here, but maybe you guys can help me out with some ideas--I'm still pretty new at this stuff, and most of you are would probably be a lot smarter about this than I am. What would you do if you were me?
I feel like I am so close to FI but not quite there, and I have been wracking my brain to come up with a solution. I have four properties in a desirable mountain west medium size metro area, 4-12 units each, (28 units total) all acquired starting in 2010, that have built up a good amount of equity. I would like to sell a couple or all of them and buy a larger one, 30 or more units, using a 1031 exchange. My property values have soared in the last couple of years, some of it my own doing (a bit of forced appreciation from improvements, raising the rents, submetering heat in my 12 plex) but mostly due to the rising market. The inventory of multiunits for sale is very low in my area. What is left is high priced. For example, an old crappy fourplex next to mine just sold for 539k, with two full price offers. It takes in 3800/mo in gross rent but the owner has to pay heat because there is a central boiler/radiators, it has old wiring with fuses!, old windows, etc. ( it sold for 259k just 4 years ago btw and I didn't think it was a good deal then!)
Anyway I feel very fortunate and lucky to own appreciated assets, but at the same time I feel like there is a lot of capital tied up that is not optimally deployed. And most of my properties are older, so it would be nice to get something newer requiring less maintenance. I work full time with a demanding job, large family, pretty high expenses and realestate is a side gig for me, although I do enjoy it better than my day job most of the time. I get 72K/yr cashflow on these right now, managing half of them myself. I could get 1.2M if I sold them all, after transaction costs/mortgage payoff but before capital gains/depreciation recapture. I would like to find a larger turnkey mulitfamily property that I could buy with 25% down that I could get 10% coc return on, after paying all expenses/management fees. Probably a class B property in a decent suburban area. Is that unreasonable? Are you guys seeing deals like this in other parts of the county? I have looked into commercial retail property but I have no experience there. I feel embarrassed to admit it on MMM but my family spends about 70k/yr to live not including 20k rent, and such a transaction would allow ~passive income to cover our cost of living and result in increased net worth over time due to principle pay down.
overseas--I'll have to read up on the BRRR strategy. 10% cap rates in TN sound amazing. What size properties have these kind of rates and what is the area like?
Johnny do you invest in Hawaii? If so, do most people go for appreciation plays there or can you get good cash flow?
I think you must be right arebelspy, unfortunately my local scene stinks now ha ha. btw I just realized your name is "a rebel spy" for the first time, I always pronounced it "arrebells-pee" or in my mind for some reason. ha ha that makes it much easier now! Thanks for your copious informative posting on this site btw!