Keep or Sell Investment Property

[Andrew Mac]

Hi everyone, been following BP for quite some time now but just made an account and wanted to get your opinions on the situation I find myself in.

I closed on a property in the Coachella Valley about a month ago, paying $450K with the intention of using it as an AirBnB rental on a part-time basis. Like many other markets, the inventory in CV has dropped to all-time lows, and, as of right now, I have the option of reselling this property for more, netting around $100K after cap gains/fees/etc.

The other option is to let in a long-term tenant right now at around $3,000 per month. We had to close the property extremely quickly, so I am currently in the process of refinancing to get a lower rate. If the refinancing goes through, the property should cashflow around $1K/month. 

My dilemma is made worse by the fact that there is nearly no inventory in this market with favorable short-term rental specs (no HOA, no land lease, no rental restrictions from the city, etc.), and this property fits them all. What would your recommendations be in this situation? Should I take the cash and invest somewhere else or keep the property and use it as a long-term investment? Your advice is greatly appreciated!