All Forum Posts by: Nicholas Chan

Hi all,

I currently own 2 STRs properties (1 in Seattle, WA, and 1 in Big Bear City, CA), Both companies have a separate LLC, and on top of that, I have another LLC that I use as a holding company for the two LLCs above. My question is, should the income go to the two STR companies or should it go to the holding company instead? And how do you pay yourself?

Thank you all! 

Nick 

Quote from @Dawn Brenengen:

I think you're in a pretty good spot. You have some side hustle income, you have some real estate you could hold on to or sell if you really needed the cash, and you have enough runway to take your time figuring out your next move. Are any of these properties ones you used to live in and could sell without paying capital gains tax? I'd just focus on looking for a new job right now. I don't think you need to make any real estate moves for the time being.

Unfortunately, the CA home has been a drag, I purchased this SFH last year with only a 10% downpayment, put in 100k, and converted it into a STR. With the economy downturn, the home is not doing as well as predicted and since I don't own it for more than 2 years I think I have to pay a capital gain tax if I sell it now. Not sure what to do with this property at the moment.. 

Quote from @Drew Holland:

What are you interested in? Do you enjoy STR? Want to learn more strategies? are you looking to go full time or part time and keep your side business as well?

i am definitely interested in doing more STR, hopefully, more property management side of it instead of having to own the properties (less risk, plus i just lost my job - hard to buy)

Quote from @Darius Ogloza:

@Carlos Ptriawan is right.  

It sounds like the California SFR is a drag on your cash flow right now that's being generated by the apartment in Washington as a STR (if I am reading your post correctly). I would seriously consider selling the SFR to deleverage at a time like this. Between your side hustle and your STR, it sounds like you will be able to wait this tough period out.

you are absolutely correct, the SFR at Cali is right now my biggest drag (losing money from doing STR), the problem is i bought this home in May last year and i don't want to have to pay capital gain tax to get out of it. Not sure what i can do with this home.

Hi everybody,

My name is Nick, I am recently impacted by the mass tech laid-off. I am in my early 30s and I own 2 properties in Seattle and 1 in California (a townhome, an apartment, and a single-family in CA). I have used the condo and the single-family home for STR but only the condo is bringing in cash flow which offset the losses from the single-family home. I am currently jobless, still looking for a gig but it's been challenging because I work in the recruiting industry (not a good time for recruiting). Luckily I have a small side business that brings in about 4k/month, all of my properties are covering the mortgage and I have enough money saved up to sustain for another year or two, I am still hoping to continue my RE journey but am usure what my next move should be. Hope I could get some advice and learn from everyone here :)

Nick