If I withdrew YY from my LLC for the year, then I have to file my personal tax based on XX+YY per that year.For the LLC, I will file the tax bases on = annual income from rent - expenses - tax - mortgage - YY.FYI:I do hire maintenance guy to fix major items like hot water boiler, gas heat, .... etc, but I underwent minor repair on own.

I have been to Dana Point, it is a lovely town in a very hot real estate market, and I really doubt you'll be convincing a judge magistrate that you tried really hard but just couldn't find a tenant.As for the advertising for a replacement tenant, that is actually pretty common.  

Depending on how they respond you may have to wait until their lease is up for renewal....I had a 4 family with 1 old steam boiler so I was paying the whole house heating bill (what a nightmare)  I ended up seperating adding 2 gas hort water boilers for two first floor units and 2 forced hot air furnaces I dropped into attic for 2nd floor apartments.I planned this major upgrade right when leases were up for renewal and told them there would not be a rental increase for the next 2 years however you would now be responsible for paying your own heat.

This topic has been debated hotly in a couple of other posts on the forum lately, and I keep seeing people drop the "stay away from Houston" warning in other posts about good areas to invest in.

The other option I am looking into is if I should sell the townhouse to take the cash out (while the market is hot) and invest in a multifamily (in which case, I would not want to sign a new lease). 

Most downtown high rise estates "sell" parking slots, in case you missed that.

In the leases, we give tenants the option of dropping their rent off at the desk and it is then slotted for general mail pick up.

The syntax to make a hot link is: [ url ]URL[ /url ] or [ url=URL ]link text[ /url ] Drop out all the spaces.

There was an emergency call Saturday for no hot water on an old boiler.  

I'm submitting an offer an a duplex in a "hot" area of Atlanta.