sell or hold in Aurora CO

[Omar Shahid]

Hello,

We own a rental property that my family and I lived in Colorado for about 3 years and rented it out about a year ago when we moved to another house.  We bought the rental for $335K and the property is now worth $450K - $470K.  We owe about $240K on the property.  We are currently renting it out for $2,650/mo and make good cash flow (mortgage pmt is about $1,700 with insurance and taxes).  However, we are having issues with our renters, and with the location and price point, it can be a little difficult to find new renters.  I am thinking of selling the property and buying another property in cash from the proceeds of this home.  However, the current property we rent out is newer (minimal maintenance) and is very close to where we currently live, making it convenient for repairs and tenant issues.  If we were to sell the home, we would get $170K - $200K in proceeds to use to buy another house.  Since we lived in the house for 3 years and just rented it out a year ago, I don't think we would have to pay any taxes on the sale.  Would you hold the property or would you sell it and use the money to buy another better rental with cash? The problem too is that the Denver realestate market is hot!! and it is tough to find good deals.  Let me know if you guys have any advice or questions?  Let me know what to do?????