Do you keep or reinvest a property that's not quite cash flowing?

[Tori Trent]

My husband and I bought a 3 bed 2 bath house in southern Utah during 2021 with a 2.99 interested rate. We fixed it up and rented it out when we moved to northern Utah. We are charging $1700/month but the property performs within -$100-200 with all the expenses depending on the month. My property manager says that we are already getting the best rates for our area.

However, the property has appreciated over $100,000 in the short time we've owned it. I've been listening to the bigger pockets podcasts and I remember David Greene saying a few times that depending on your situation, if you can hang onto an appreciating asset even if it isn't quite cash flowing that it is sometimes a good move because appreciation builds wealth long-term and eventually rental rates will go up. (One example is episode 534)

We can afford to pay the difference to hold onto the property for appreciation but it seems like maybe there is better ways to use our money so that it both cash flows and appreciates. 

I'd love to hear what more experienced investors, like yourselves, would do in our situation. 

Here are some ideas that we've considered.

1. Keep it, benefit from appreciation and eventually use it for a HELOC for future investments

2. Turn it into a mid-term rental (our research suggested it would not be worth it for this particular property in our area and short term renting isn't allowed)

3. Sell it and reinvest it in a house hack where we currently live (we are currently renting from a relative below the market rental rates but home prices are very expensive where we live. We can save and buy a house hack without the money from the sale but it could help.)

4. Rent until tenants move out then sell it and reinvest long distance. We've read the long distance real estate book and would like to do it in our near future. 

5. Sell it and reinvest in a more medium-term-rental-friendly property in the area. We've also read the medium-term rental book and like this strategy.

What ideas have I missed or is there something I'm over looking? Thank you so much for your help!