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Updated almost 10 years ago on . Most recent reply
![James Felder's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/298977/1694609596-avatar-gator15.jpg?twic=v1/output=image/cover=128x128&v=2)
Should I sell my rental property?
I'm a new member and would really appreciate everyone's feedback. I purchased a condo in 2010 for $155k. The property was a foreclosure. In 2005, the original owner purchased the condo for $305k, but foreclosed on the property. The condo was built in 2005. We've had tenants renting the property over the last four years but they informed us they will not be renewing their lease. Our mortgage/HOA is $980 a month and we charge $1625 a month for rent. As you can see, we have nice cash flow. We consulted with a realtor as we are considering selling and learned we could get $335k if we sold. What would you do in my situation? Would you sell or continue to rent? We don't mind being landlords and the experience has been great thus far as we haven't put much money into the condo. I'm not sure if we will have the same luck with new tenants. The area is a highly desirable area and could easily rent. I'm just not sure if I should keep the property since it has appreciated so much. That's a lot of money to leave on the table if we didn't sell. Again what would you do?
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![Trevor Ewen's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/193434/1621432288-avatar-trevorewen.jpg?twic=v1/output=image/cover=128x128&v=2)
$1625 / mo on rent vs. 335k sale price puts you on the wrong side of the 1% rule (or theory as some are calling it). When you bought it, you were on the right side, so well done. I recommend selling it off and turning it into several investments in properties where the rent is 1% or higher than the value of the home.
I am also assuming, based on your location and that price, that it's in Denver. Denver is a very hott market right now, and is flooded with retail buyers. Take advantage of this great opportunity to make a smart exit. Just don't spend the difference, make it into more cash-flowing investments in the Midwest.
In some markets like Indy, Kansas City, Memphis or Atlanta, you could turn that into 4 single family deals. I don't see Denver going out of fashion anytime soon, but it's a great time to make a payout and spread the risk.