orlando rent or sell

[James Beard]

Does it make sense to realize a loss on a 2/1 condo purchase in a good location? Bought in 2005 for 134K (been rented since). Offer of 120K (5K over comps.)

Cash-on-cash cap rate of 5.8% given current rents ($1250.) higher cap on sale price. Is the cap rate in this market reasonable compensation for risk or should i take the offer and sell? Orlando is growing fast even though income growth is mostly flat and there is a lot of new capacity coming online though at a higher price point. Cap gains add another 5-6K of liability unless I can get a 1031 exchange. Also, Orlando has quite a few investors in the condo world who could possibly start selling should the market soften adding more inventory.

Essentially a rent or sell decision.