This is an important consideration in most LL decisions, LTR or STR.

Hi everyone,
It has been awhile since I have posted on here, but am excited to get back in!
Currently all I own is a 70-year old house that I live in--it is in good shape but needs updates. I updated the bathroom/po...

Any issues with fees, management, or decision-making?

But it's just a trade off--no wrong answer.

For some investors, the trade-off is well worth it.

You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

To qualify, taxpayers must meet specific criteria demonstrating that they are real estate professionals who materially participate in their rental activities.How to Navigate the Rules:Step 1: Identify your real property trades or businessesHere is a list of activities that are considered to be a real property trade or business:RedevelopmentLeasingConversionConstructionReal property developmentReconstructionOperationRentalBrokerageManagementAcquisitionIf you participate in multiple of these activities, you may be able to combine them making it easier to meet the material participation hour requirements.Step 2: Demonstrate material participation in real property trades or businessesThere are seven tests to determine if you demonstrate material participation.

@Brett Jurgens,With strong equity and a good tenant, you have a few options:Cash-Out Refinance: Offers lower, fixed rates for stable monthly payments and lets you keep the property while using equity to invest in another rental.HELOC: Provides flexible access to cash, though with typically higher, variable rates that can fluctuate over time.1031 Exchange: If you're open to selling, a 1031 exchange could defer taxes and allow you to trade up to a higher-value property or diversify into a different market.Each option has pros, so it really depends on whether you want to hold onto the current property or leverage its value for something new.

My approach doesn't require any special expertise in trades to make the estimates only that you are honest with yourself about your estimates.

Tasty Trade is a brokerage that has allowed IRA LLCs/Trusts to open brokerage accounts.