Should I sell this property?

[Brian Weaver]

I own a SFR in the Phoenix area. The current tenant is excellent and has been there for many years. Current rent is under market at $1500. With the Phoenix housing price boom, then property can now sell for $450K+, loan has 80K left on it @ 3.75%.

Options I'm considering is 

1. Sell it, and go invest in another market where I can pick up better ROI
2. Raise the rent. Current renter is great, so have to be something manageable. 

If I sold, I'd have capital gains tax on 300K unless we can do an 1031.  Leaning toward selling it and look to buy in Michigan or another state where the price to rent ratio is better.