All Forum Posts by: Sean Taylor

Have you factored in your depreciation benefits? Maybe that will help you on the tax side to break even this year. Losing 50k+ on selling does not sound like a good plan to me. Where can you go that any cash flow will make up for that loss in a reasonable amount of time? That's easily a 10 year return on a cash flow deal these days due to current rates. Maybe look for ways to trim costs, especially in the slow season, or add some unique items to the property to engage more nights booked. Understanding your target customer in STR is critical and then catering to them. If this area is likely to go up in value again due to it's location and features then you will make the money back over time. If you can afford to feed it for a while then it will probably be worth it.

@Sean Taylor

I'd cut bait and invest in good cash flowing properties. Your property is a liability with negative cash flow even if you're adding more guests year over year. I'm in TX too and target C+ class SFR within 15-20 min of downtown. I put 20% down on cash flowing properties that are appreciating better than nicer homes due to the demand and low inventory. Your ROI and appreciation will be much better in this class property over time in TX. Plus you'll have almost zero turnovers bc this class tenant most likely won't ever afford to buy so they'll be with you forever which makes it very passive compared to what you're doing. Good luck.