We have a small park in Arizona, and two homes in southern California. If I sold them all, I would have about $1.2M total, and about $800K taxable. I wouldn’t mind rolling it all into another park or two, but I wonder two things:
If I didn’t want any more parks, but didn’t want to pay the huge tax bite, are there any other 1031 exchange-types that folks have done and were glad they did? Is there anything else I can do with that money and avoid the taxes?
If I do sell all and am willing to stay in parks, should I have one, or two? I like the idea of just one because I could get a higher-quality park, with hopefully higher-caliber people (yes, I know, there are always exceptions; but on average…), nicer looking, nicer area, etc, etc. However, having all my eggs in that one basket worries me. What if that town gets wiped out by a hurricane, etc, and becomes a ghost? That is, for some reason, becomes an undesirable place to live. Instant no income. Having a second park diversifies, which is good, but doubles the management headache, and I’m back to a lower-quality park…times two.