Ensure your records include details of any hired help and the tasks they performed.

After nearly 3 years of operating history, I'm concerned that the properties are not performing well enough to warrant continuation of the venture, and I'm considering selling.

Here's a bit of background:I have over ten years of experience in real estate.I've bought and sold hundreds of properties in the past two years.I have six performing rental properties and aim to expand this to 50 by the end of the year.

In the meantime, maybe look into refinancing options for the short-term rentals to access some equity, especially if they’re performing well.

For your property to perform well, I would want it to rent for around $1800 a month to cover expenses and provide some cash flow.

BUT, please be aware of the followingMissing interest payments on a promissory note is not necessarily the result of a fraud, most often it is simply the results of a poorly performing business.  

If someone wants to host MTR, STR, whatever, they should start their own management company, not try to use this model where they can make additional money off of an owner if a property performs well.

They cost $800k+ though but well worth it when want investment that actually performs profitably.

For DSCR, it's usually slightly higher than the conventional route due to it only looks how well the subject property rental performs + credit vs conventional where it requires credit, income, assets to be reviewed.

Purchase Another Investment Property and Utilize a Cost Segregation Study:When you reinvest in a new investment property, you can perform a cost segregation study to accelerate depreciation.