Texas duplex, should I continue renting or sale?

[Jason Parnell]

Hi BP audience, My name is Jason and I purchased a duplex near Fort Hood following deployment in 2011 for $130k. Since purchasing the place I have replaced/updated so much that the house is virtually on cruise control at this point and each unit rents for $800; however I am living on one side since I just completed my doctoral degree. Currently living rent free in my place until licensed to see patients and I am stationed some place else. I still owe $28k on the property and property taxes are at $2,300/yr (significantly higher than my property in SC.) I would like to hear thoughts on whether this property is worth maintaining in my portfolio as a rental. I am 32 years old and am in between keeping the property as I move on to new investments or if I should consider a sale and advancements to larger REI's.

[Thomas S.]

I would sell but if you keep it you need to pull out all the equity. It should be able to cash flow with 100% financing.

You have far too much equity lying dead in the property to truly cash flow positive due to the opportunity value of cash. Refinance to the max and make your money earn it's keep as opposed to being dead and buried.