Should I sell or hold?

[Jan Soul]

Hello all:  Thank you in advance for your help.  Recently bought a single family home (1000SF, 2BR/2BA) in  California for $1.3M with 20% down, Interest Rate 3.875%.  The appraisal at the time of purchase estimated the value of the home at around $1.6M and it could probably currently sell for between $1.5 and 1.6M.  The rental market is weak in the area, though, and rent is $4500/mo with significantly negative cashflow. The original plan was to hold this property for decades given significant historical appreciation in the area and possibly someday retire here (in 20-25 years) but starting to rethink that now given the negative cash flow and the risk that appreciation at the rate required to make this a good investment is far from guaranteed.  However, any potential profit from selling now (I plan to hold for at least a year) will largely be depleted by closing costs, capital gains taxes (20%), etc.  Given complicated life / family circumstances at the time, the decision to purchase was rather hasty and now trying to make sure future decisions are well thought out.  Any advice on whether to hold or sell or any other ideas would be appreciated!  Thank you!