Looking for advice about my next move
My current portfolio-
Home #1 Cache, OK, Rented out for the past 2.5 years (VA loan)
Home # 2 Lacey, WA, Primary home for the past 2 years on the 23rd of December (VA loan)
Zero cash flow
Option 1- Sell my home in Washington State under a Sole propriety for minor tax benefits to my understanding. Use the net proceeds to invest but how much? I must keep in mind I need to pay down my own debt or at least that’s my belief. Get utilization down so I can apply for bigger loans to invest into passive income.
Option 2- Hold on to my home in Washington State... Wait for the market to sell at the right time, then invest into more real estate. Downside is, I wouldn't have a lot of capitol to use. I would still have higher amounts of credit card utilization. And I'd probably be paying a property management team to collect my rent. I've looked at different rent calculators, but the information looks really skewed.
Option 3- Sell my home in Oklahoma. I owe approx. 140K, the market says I could potentially get 190K. Use the capitol to invest into real estate and possibly a house depending on the right situation. I've thought about doing a 1031 like-kind property but have no clue how it works other than a 3rd party handles the transaction, and you have 45 days to identify replacement property.
Goals- I want to start my own LLC and see that it could possibly help me out financially. I spoke with a CPA advisor from wealth ability, and I only see benefits, thank you bigger pockets podcast! I need to come up with about 8K more to retain the CPA for this year's taxes. What I didn't know is that tax deductions based on legal entity has no meaning when filing for deductions.