Another creative option some people are using now is to borrow against a permanent life insurance policy with cash value, tax-free, and use that money to invest in real estate or other opportunities.

Good rule of thumb.Don't hold onto assets that lose money unless you see massive appreciation over the next 5 years where you can make a killing.

Appreciate any insight from people actively closing in 2025! 

We know selling would lose us money since we've only owned it for 2 years so we are trying to hang on, but when we are losing money every month due to the PMCs and their outrageous charges, it is making it hard.

BiggerPockets is full of great people carrying out great strategies! 

When most people get excited about starting an Airbnb or vacation rental, they jump straight into the fun parts:Furniture shoppingChoosing paint colorsCreating a themed designUsing pricing toolsLearning how to respond to guests quicklyThese things matter.

The deal itself looks strong, the risk is the timeline.Your numbers are tight but workable.Your tenant plan is optimistic.In CA, optimistic timelines rarely survive first contact with reality.If the tenant cooperates, it's a great flip.If they don't, you could lose your margin to delays alone. 

But for most people 1031 is the obvious answer, because what else would you do with the money other than re-investing it in RE?

Those are all people that work for the company.

Plus, you have a second income in case he loses his job.