Should I sell my single-family rental that's up 30%?

[Tommy Ostendorf]

I own a single family home in El Segundo, CA (Los Angeles) that I purchased 3 years ago.  I lived in it for 2 years as my primary residence and have been renting it for one year.  It currently rents for enough to cover it's costs and has a great note of 3.75%.  I'm not really making anything on it.  I purchased the property for $815,000 and I believe I could sell it for $1,150,000.  My plan was always to buy, hold and rent, but with this amount of gain, the uncertainty of the current market, and the $500,000 tax exemption (married), I'm very tempted to sell and take the tax free cash.

I like the idea of having the cash in hand, especially if the market turns, to pick up another investment (ideally multi-family). But, I also like the BRRRR strategy.

What would you do?