Should I sell it or continually rent it?

[Rong Liu]

Hi, Everyone,

This is my first post here, please advise if I should sell now or keep renting.

My rental townhouse is in south San Jose. I lived there for 5 years before I rented it out. Now it is about 2.5 years after I moved out. I bought it for $280k, and currently it's worth $520k, and monthly rent is about $3200-3300. I have $180k mortgage left, it is on the 4th year of the 15yr term, with a fixed interest rate 2.5%. My monthly PITIH is about $2200 and I manage it myself as it is not far from me.

If I sell it now, I can take advantage of capital gain tax free allowance, and get ~$300k cash in hand. I don't know where to invest it though.

Or, just keep renting it out, and in 10 years it will be paid off and generate me $2500-3000/month cash. 

Any suggestions please?

Best regards,

Rose