Keep renting or sell?

[Paul Hoeppner]

Thanks for reading this post!

I purchased a condo in October of 2009 for $115,000 as my primary residence in Las Vegas.

December 26th, 2012, I did an FHA streamline to lower my interest rate to 3.75%, however, the PMI is extended now until 12/26/2017. November 2013, I purchased a new primary residence.

EXPENSES

Mortgage (includes insurance, taxes, and SIDs) - $727.58

HOA - $190.60

Trash - $14.21

TOTAL: $932.39

Total rental income currently $925/month. However, the PMI is $103.29, but won't go away until the end of 2017. Right now I'm losing a few dollars a month on the property. The HOAs include water, maintenance, land scaling, basically everything. There is very minimal maintenance, and the renter that has been there since January always pays on time.

I tried to refinance the place recently to remove the PMI and lower the payment, since I currently only owe about $85,000, but I'm having serious issues getting a bank to refinance a condo as an investment property. The property was appraised last month at $130,000 through a BOA appraiser (which the cost of this actually got refunded to me when they said they couldn't do the refi).

So my question is, who thinks it's better to sell the property, which I feel would sell for close to the appraised value, take the cash and reinvest elsewhere (since I dislike the idea of investment property being a condo)?  Or is it best to keep the property, since it is only losing $7/month, I have a great tenant, the property is very low maintenance (and brand new as of 2007), and will produce positive cash-flow in 3 years right around $100/month.

Two things to note, I think that I could get closer to $950-$975/month if the current tenant doesn't renew his lease.  Also, the property is on the incline in terms of value.

I'm honestly 50/50 on this one.

Thanks in advance!