Seeking Advice - Sell or Hold SFH Rental

[Tom Giles]

Background:

April 2013, I purchased a SFH HUD repo. (built in 2007) in College Station, TX for $89K.

The loan is a 30 year conventional at 3.75%, 20% down.

Rehab costs were about $12K so total out of pocket investment was about $30K.

I lived in the home for 26 months until May 2015, when I retired and moved to Florida.

The house has been successfully rented since I moved out starting in June 2015 and I am happy with the property management company. After preparing 2016 taxes, net taxable income for the year is $4700. I am not depreciating.

Comps on the house are between $140-150K, and estimated to grow 3.5% in the next year. I presently owe $67.5K.

If I were to sell the house before June 2018 my cash out after expenses should be between $60-$70K with no capital gains tax.

Question:

Should I sell the house before June 2018 and take advantage of no taxes on the $30-40K capitol gain or should I keep the house as a long term investment property.