Should I sell my SFR?

[Varinder Kumar]

So I purchased my first SFR 2015 and has been rented out for a year now. It is located in good area of Orange County, CA. My mortgage is $2k and some change and rented out for $2700. The tenants are great and always on time. The home was completely remodeled down to studs even new framing in alot of places. I purchased it for $406k and did a 5% down conventional loan on it. The balance now is $372k and the current market value is anywhere between $525-$550k. I purchased this home with the intention of someday living there should I have a family. I have a place to live however either way. Im leaving my emotions aside and strictly looking at this from a numbers point of view. Now I did spend total of about $105K on the entire rehab including a years mortgage, reason it took almost a year is because i paid for rehab as i got paid from work, live and learn, non the less it all panned out and im here now. So, also I am not investing in Non-Performing notes and would like to grow more in this market.

My thought process is if i were to sell the property I would get about $140K in profit. Also this is as owner occupied not a rental. So the two year mark is approaching this may, so i would avoid capital gains tax. Since the market is high right now and ill get top dollar. I assume market is going down next year and I can buy back in then. I want to use the profit i make to invest in notes, and double my money. Just dont want to hold on to this if the time is now for me to sell and make a good profit. I need some input as to what would be the best investment strategy for me to go with. Thank you in advance and taking the time to read all this.