To Keep or Sell Rental Town home in San Jose

[Kiran R.]

Hello everyone

I like to get the inputs from some experience investors, and what you would do if you were in my shoes.

1. I bought a 2/2 town home in San Jose in Feb 2013 as primary residence for 520K with 20% down, which now can be sold for ~700K
2. And in late 2015 we purchased a SFH and moved into this, making the townhome as a rental property for 3k/month
3. Now as the time to renew the  lease with my tenants has come, I am in two minds about keeping the townhome or selling it and take some profit.

Here is my thought process so far

1. The town home barely cashflow, which is ok. The only reason the thought of selling has come, is I want to take out the profits  when the market is good, and have cash ready when the market goes down may be this year or 2 years from now. 

2. I have no better investment ideas with the profits from the sale of town home, so I might pay some to reduce the mortgage of my current Primary residence(SFR), and reduce my total debt.

Any suggestions/ideas, or what you would in similar situation are highly appreciated.