All Forum Posts by: Priyanka Verma

Hi Nathaniel,

Thanks for sharing your situation you're definitely not alone in facing this kind of decision, and it’s great that you’re thinking it through carefully. Here simple breakdown to consider when deciding whether to sell Rental Two

It’s cash flowing: You're making around $400/month after expenses, which is always a good sign.

You already own it: No transaction fees, no closing costs, and no need to go property hunting again.

High interest rate (8%): This is likely eating into your long-term profits. Over time, a high interest rate can reduce your total return even if you're cash flow positive now.

Equity isn’t growing fast: Compared to your other rental, this one has less potential in terms of appreciation.

If you plan to use the profits to pay off student loans or reinvest in a better property, that could increase your long-term financial health. Also, managing multiple properties, especially with debt, can add pressure. Sometimes simplifying your portfolio helps you sleep better at night. In any portfolio, sometimes it’s smart to let go of the least efficient asset and focus on strengthening the rest. At the end of the day, the decision comes down to your personal comfort with risk and your long-term goals. If Rental Two feels like it's holding you back or not performing as well as it could, it might be time to sell. But if it’s easy to manage and you’re in this for the long haul, holding can also be a reasonable choice.

Hope this helps give you some clarity as you weigh the options.

Wishing you and your wife the best in your journey!

Warm regards,

Priyanka

Hi Ghassan,

Thank you for taking the time to share such valuable advice! I hadn't fully considered the impact of HOA rules in addition to local and state regulations such a helpful reminder when analyzing short-term rental opportunities.

I'll also look deeper into LLC and Trust structures for asset protection and tax strategies, as you suggested. It's great to get practical direction like this from experienced voices in the community. I really appreciate your support!

Wishing you a productive week ahead!

Warm regards,
Priyanka

Hi Bonnie,

Thank you so much for your thoughtful and informative response! 🙏 I truly appreciate you breaking down the nuances of short-term rental depreciation and the distinction between active vs. passive investment. This is incredibly helpful as I navigate the tax implications more closely.

I'll definitely look into cost segregation and connect with a CPA/EA who understands the benefits in this space. Your advice about maximizing tax benefits and improving cash flow during the early ownership years is exactly the kind of insight I was hoping to gain from this community.

I may follow up with more questions as I dig deeper...thanks again for offering your support!

Warm regards,
Priyanka

Hi everyone! I'm Priyanka, and currently working in real estate analytics. I recently joined BiggerPockets to learn more from experienced investors, stay up to date on what’s happening in different markets, and share ideas around short-term rental strategy and property research.

I’ve been diving into short-term rentals and really enjoy exploring how data and location insights can help make better investment decisions. I’m especially interested in:

• How investors evaluate STR markets

• Tools people use to forecast occupancy and ROI

• Portfolio management strategies as markets shift

I’m not here to pitch or sell anything—just excited to join the conversation, contribute where I can, and connect with others in the community. Looking forward to learning from all of you!

Cheers,
Priyanka