Consider Entity Setup — But Choose WiselyIf you’re actively operating your Airbnb business, you may want to form an LLC for liability protection — but be careful with tax elections.Don’t use an S-Corp for your short-term rental property.S-Corps work great for flipping or wholesaling (active earned income), but they complicate depreciation, distributions, and 1031 exchanges on properties.

It saves time and keeps everything organized for tax season.Key Metrics to Monitor• Monthly cash flow per property• Expense categories as a percentage of revenue• Occupancy rate and average nightly rate• Net operating income• Owner distributions and reserve levelsPortfolio DashboardingOnce your books are clean and consistent, you can build a Google Data Studio or Excel dashboard using QuickBooks exports to monitor performance across your portfolio.

What kind of return would you want if their was a guaranteed monthly payment made from GOI so you arent waiting years for distributions but can have a monthly payments with lump sum at the end with refinance or sale?  

I can tell you that from the inception dates of our wired capital into REM, we have seen a total of $12.04K back in distributions over around a two year period.

Corp tax rate is 21% (although second tax on dividend distributions can undo any tax savings or even end up as a tax penalty).  

Using an S Corporation can help reduce self-employment tax by splitting income between salary and distributions.

Once you’re profitable, forming an S Corporation can reduce taxes by allowing you to take part of your income as distributions instead of salary.

No such distribution ever occurred.

They need to properly assess the risk and distribute their capital based on their personal risk tolerance.

- 2019: initial capital contribution- 2020-2023: no distributions, no contributions, no data- 2024: beginning of the year capital balance of 35% of the initial, end of year balance of zero, non-recourse financing of 3 times of the initial capital, 1231 loss of 60% of the initial capital.Thank you