Should we sell our rental property?

[Sellen Wei]

I am new to bigger pocket, and just start reading rental property article this year, since we need to decide whether or not we should sell our rental property(our last primary house).

Here is the story: we purchased the house  in San Jose ($1M) as our primary house back in 2016, we live there for two years and had to left due to work location change. We kept it for the past 3 year as rental property. For this year, Rental income = mortgage+property+insurance. Before COVID, it could made ~$3000 per year, The house is quite new and about $200-2000 each year for repairing. Tenant pay all the other stuff like utility and cleaning fee. 

Pro and cons for keep the property:

pro: 

1. we are not losing much money on the rental property

2. although appreciation increase ~5% for the past few years, potential is good

3. familiar with local, we know real estate/loan agents, handyman, friends could help us handle any cases.

cons:

1. we could get tax deduction to sell it next year since it qualified for our primary house.

2. remote management is frustrated. but hire manager to manage it almost eat all our cashflow

2. the house is too large, not a good invest property for 5% increase per year, cash out and invest in something else MAYBE better

It really cause me headache whether or not we should sell the property, it is on the line of making/losing money. Property value not increase much for the past five years. And we could get tax deduction for selling it next year. Any suggestion or help will be appreciated!