Sell rental or keep for retirement income?

[Mindi B.]

I have a 2/1 SFR currently rented. Bought in 2005 at 130k (stupid mistake), worth about 140k today but needs some rehabbing. Current mortgage is 80k. I have a great tenant who pays rent early and never bothers me but unfortunately the property is not cash flowing, at best it is breaking even. I am considering moving out of state and can't decide if I want to rehab and sell (my original plan and why I held onto it for so long) or keep it as a long term, out-of-state rental.

Mainly I am thinking about building my rental portfolio so I have income during my retirement (I'm 39, self-employed and have no 401k so I'm trying to plan ahead when I hit 65-ish.) By then the mortgage would be paid off and the property would be cash flowing. Although 20 years is a long time to wait for cash flow to start coming in. 

I'm probably going about this all wrong. Would appreciate any insight you have to offer. 

[Jeff Wallenius]

@Mindi B. sell the property and find another with the cash that you take out of your current rental. You can 1031 the property into another rental and avoid the taxes (by avoid I mean delay until you sell down the road). Too many other options across the nation to be paying into a rental monthly.