Should I dump this rental property?

[Chris K.]

I need some help on this one.

In September 2014, I moved from Washington, D.C. to Charlottesville, Virginia. In DC, I lived in a smallish 2 BR, 1 bath, 1 den Rowhouse from the 1850s, right in the heart of the city. Consistent with DC prices, I paid $735k for it in 2007, and put about 50k in renovations into it over my eight years in DC, so my cost basis is about 785k. It is financed with a 30-year fixed rate mortgage at 3.75%, and I owe 530k on it, and PITI is $3100/month.

When I moved to Charlottesville, I found some wonderful tenants for my house in DC, and I became a landlord.  The tenants have been, and continue to be wonderful.  They just told me that they would like to renew for another one-year leas, but I expect that, after the next year, they will likely move from DC, so I will have to make a decision on whether to sell or to find new tenants.  The house is in a very desirable location, walking distance to bars, restaurants, public transit, etc -- so I do not expect vacancies or finding great, reliable tenants to be an issue.  The issue is whether the numbers justify keeping this as a rental. 

And with that, Here are the numbers.

The property currently rents for 3550/month, and -- because I am not local and I do not have a reliable handyman -- I cough up the $50/month for American Home Shield's home warranty (I'm ashamed, I know).  So, with 3550 - 3100 - 50, I cash flow about $400 per month.  During my first year of being a landlord, I feel like everything broke, and I either fixed it or replaced it knew, including a $5,500 hit for a new HVAC, so I'm finally starting to build a decent reserve and haven't received a phone call in months (fingers crossed).  For every month that the tenants live there, they pay down the mortgage about $1,000. The house is now worth about 850k.

So, my bottom line question is -- when these tenants leave, should I dump this property and find others to reinvest?  I have a lot of equity tied up in this, and I don't really know if my return is all that great.  On hand, after the next year's lease is up, I'd like to sell it and use that money to buy a few properties here in Charlottesville, which is closer to home.  On the other hand, this is my only rental property, and I must confess I'm not entirely skilled at finding new deals (which is why I'm trying to learn) and I'm not really seeing any in Charlottesville that I'm dying to jump on at the moment.

Any thoughts? Advice?  What would you do in my shoes?  Dump it?  Keep it?