I need Exit Strategies help

[Morgan Painter]

I have a STR that doesnt break even. Its our first one so it was a learning experience at the least. We are trying to decide the best way to exit this property so we can move on with other investments. We were planning on selling fully furnished between $325-$350k (we owe 238k)using the proceeds to payoff heloc/CC's etc we that we used for this project. We finished building it in 2024 and are coming up on 1 yr doing STR.

Should we sell it, pay the capital gains,pay off the debt and start from scratch with the profit left over or 1031 which willHave its own fees and not be able to pay off debt and learn that whole process in a short time frame. 

*ive heard after 2 yrs you can sell and avoid the gains tax but have also heard that 2nd homes/investment properties will always have the gains tax just depends on how long youve owned the house. 

We thought about long/mid term renting it but the numbers are there for a monthly tenant in that area. 

[Christine Mulkins]

@Morgan Painter The home needs to be your primary residence for 2 out of the last 5 years for you to avoid capital gains taxes. Otherwise, for any property other than your primary residence, if you sell without doing a 1031 "like kind exchange", you will owe capital gains.