Taking my first step…

Hi all,
I’ve enjoyed reading the posts on these forums which have added to my knowledge on ppty investments especially on CF+ ppties. Have also read Steve’s, Margaret Lomas’ and Kiyosaki’s books on being financially independent and creating a passive income. My aim now is to put this theory into action (after doing all the research, of course) and to take my first step towards my financial goal.
However, I need some help on the following:

1. Negatively geared property off my personal income
I bought (off the plan) a student accommodation apartment in Melbourne for $148K+ $3K purchasing costs in 1999. This was solely to reduce my tax (wrong reason but didn’t know any better at that time!).
Rental per year A$12K with corporate fees of $4K and rates & maintenance of A$1.5K.
Outstding investment loan (P&I) $130K secured through LOC ($250K), 80% equity of own home (no mortgage). Bank would not loan agst the aptment.
Without depreciation claims from ATO, investment ppty is –ve CF.
The apartment is currently valued at A$150K-A$160K.

Should I :-
1. Sell the aptment at a floor price of A$160K. Selling cost is A$7K. I don’t think there is much CGT if I choose the indexation method, or
2. Convert investment loan to interest only, submit a tax variation. According to my calcs, this will make the ppty slightly CF+ ie. until the depreciation claims run out in 3 yrs time, or
3. Reduce the investment loan to approx A$75-80K ie. build more equity thereby converting weekly CF from –ve to +ve. I think the issue here is the CoCR!

I would like to turn this ppty to CF+ (if possible) and your expert advice is very much appreciated.

2. Proper structure for my investments
I would like to begin afresh in my investment journey with the right structure (to protect the investments as well as for tax minimisation purposes). Have begun reading Trust Magic and will move on to Tax Battles later. Some info on myself : I’m single with no dependents and wish to be financially independent within the next 5-10yrs. Also for estate planning purposes, I would like to distribute income/assets to a fund set up to care for my disabled niece who lives overseas. I’ll be seeing an accountant soon (didn’t ever thought I needed one!) but would like to hear your ideas/opinions first. There is a lot of recommendation for trust in these forums. Should I set up a trust as my investment vehicle? If so what kind of trust should it be? Discretionary hybrid trust or is some other structure best suited for me?

Any kind of advice is very much appreciated. I’m taking my first step on this journey and if I’ve missed anything, do let me know. Thanks a zillion.

Best regards,
Catherine
The journey of a thousand miles begin with a single step. This is my first step….
[exhappy]