Would you hold or sell this investment? Seeking advice

[Paul Hansen]

I have a townhouse condo that I have owned for 11 years. It was my primary residence until I moved out of state 4 years ago. For the past 4 years, it has been a rental property that has served me well on a cash flow basis since moving; however, recently the market has demonstrated a notable jump in appreciation, specifically in the complex that this condo is located and I stand to make a nice return. I am trying to decide whether it makes more sense for me to continue collecting the cash flow or cash out on the appreciation and purchase other investments. I currently do not have other RE investments. I, however, work in real estate and plan to begin using BRRRR or flipping strategies to grow my wealth. Here are some details and I would love to hear opinions from others on whether you would continue holding or cash out.

I purchased the home for $184,000 in 2008 with $1,000 of my own money. I paid an FHA mortgage for 8 years before moving. While living in the home, I made $25,000 worth of upgrades so I calculate that I have invested $26,000 plus the interest, mortgage insurance, taxes, and HOA fees I paid while living in the home.

I have had tenants in the home for the past 4 years with only a two week vacancy. The rent is $1,395 per month and my expenses are $1,200 so my cash flow is $195 per month or $2,340 per year and I have had minimal maintenance costs in the past 4 years, totaling around $1,000. So in 4 years, my cash flow has been appx. $8,360, which I feel is a great return that is generally 8% to 9%.

Based on current market conditions, I believe that I can sell for a minimum of $225,000, and I do not anticipate such accelerated growth in the next 5 years. My remaining mortgage is $148,000. My closing costs will be very low as I will not need to hire a real estate broker so I stand to cash out with roughly $75,000. This is very enticing to me, but so is the return I am receiving on the property.

I feel the $75,000 can be employed to drive my new investment strategies as this home was never intended to be used as a rental until I moved, and now I have bigger ideas on how I would like to grow my investment portfolio.

What would you do if this was your investment? Thanks for your input!