Hold or Sell? I Need Help! Here's the breakdown.

[Robert Walmsley]

I have a SFH built in 1998, 4 bed, 2 bath, 3 car garage, single story in excellent condition in Antelope, CA. I owe $140K (Originally paid $175K in 2011) the ballpark market value right now is $420K ($280K spread). My PITI payment is $1,104 and I have it rented for $1595 however my tenants are getting ready to vacate. I can re-rent for $2000/Mo. and capture roughly $900/Mo. or sell.

My loan is 30 year fixed at 3.6%, I am a RE Broker so I can minimize costs on the sell, probably net around $265K. It has been a rental for a few years so I will have to pay cap gains or roughly $50K netting out at around $215K.

What should I do?

Capture roughly $900 per month on the rent or walk with the $215K? 1031 exchange is an option but I don't think I want to re-invest in todays market in my area. I am not excited about land-lording across the nation either. What would you do? Looking for some guidance. Thanks!