What should I do? Help.......

[Bruce L.]

Help! Need some advice. Going to try to make this short.

So, I purchase a SFR in 2003 for $170K, my balance now is $115K.
My rent is $1300.
Total Monthly Expense: $1100.
The current fair market rent: $1000 - $1200.
Current market value is $135k - $140k and rising due to record low inventory.
40 minute drive one way to property, my plan is to have all my rentals within a 20min drive, so I do plan on sell this one day.

My tenant just informed me that they can no longer afford the rent and is looking to move out.
If they move out, it would take me 3-5 weeks + cost to find a new tenant. I ask them if they would stay for $1100, they said yes. It’s a very competitive rental market right now.
No cashflow @ $1100, just breaking even.

My question is, should I sell? Take the tax lost.
Or rent it out to my current tenant for $1100 and hope that prices will rise?

BTW, my A/C technician told me last year that I should start to budget for a new A/C unit for he's not sure when it will go out. Est. $5K.