Should I sell my first home purchase in SF Bay Area?

[Blisseth Sy]

Hi all,

I am a Newbie first-time homebuyer/landlord here, hoping for some wisdom from the community.

I bought my first primary residence in Nov 2021 for $850K (20% downpayment) in San Pablo, California. I lived in it for 2 yrs. Then started renting it out last year 2023 November for $4700/month (renter pays all utilities) due to life situation change (moving in with my bf). I have priced the property according to comparable homes in the area.

My question: should I sell the house b/c it doesn't seem profitable?

More details:

Mortgage (principal + interest): $2930/mo

Property taxes: $15K/year

Home insurance: ~$1K/yr

Cost of home ownership/month: $4280/yr (not counting for any tax deductions related to the interest and property tax)

If I account for $20K of interest and $10K of property taxes as an income deduction, then I can reduce the cost by ($30K x 35%) divided by 12 = $875 per month = $3400/mo cost of owning the house

Rental income after 35% federal income tax + 9.3% state income tax = $2618/month (!!)

SO, I am paying $782/mo to rent my house to the renters (not including any maintenance costs)!

I have not factored in depreciation yet.

Am I thinking about this correctly?

Seems like I should offload this property as soon as I can recoup the purchase + real estate fees + closing costs? Or should I not even wait for that (eg the opportunity cost of my $200K now in equity could be spent elsewhere)?

Currently the house is valued at $805K according to Zillow (vs the $850K that I "bought" it for).

Thank you in advance for your input!

Newbie first time home buyer and first time landlord.