Losing cashflow due to increasing variable rate HELOC

[Michelle L.]

Hello all,

I'm on the struggle bus trying to determine what to do with a STR that I bought in cash last November using a variable rate HELOC from my primary residence. I got a good deal on the this condo which was cash flowing great until the interest rate cost doubled. I am also worried about the over saturation of the STR market in this location (Hilton Head, SC). I know I can sell but of course the market is down so it's not an ideal time. This is my first year in STRs as well so it's really hard to project future cash flow with all the variables of this crazy market. I am looking for advice on whether I cut my losses and sell now or hold on as long as I break even. Any thoughts? Thanks in advance!