Need advice on STR exit strategy

[Samson Paturi]

Hello All, need some advice. Last year I bought an STR using conventional loan. At that time real estate was at an all time high. I took out a HELOC from my primary residence for down payment thinking that there would be cash flow and appreciation. A year later, the property brings in revenue but is slightly under my average calculations but more importantly the HELOC rates have gone up significantly. If I sell now using conventional methods, I will get 10% appreciation but with seller costs etc that will cause a huge dent in proceeds. Also, I will probably end up paying capital gains taxes on it as well. How to tackle this situation? Should I just wait one more year to see if the property appreciates some more before selling and/or rates come down so I could refinance my primary home to include the HELOC into the loan payment? Any suggestions welcome.