Rental property paid off, what are the best investment options?

[Viji M.]

My name is Viji and I am CA.  I had purchased a condominium 15 years ago as my primary residence with a 15 year loan.  I have since rented the condo and now it is fully paid off.  I will be able to move back into the condo in two years but I am also thinking if I should sell the condo and reinvest in a bigger property.

I am open to all opinions.  I am happy I have paid it off but stumped and wondering if it's the right thing and what options may be better as the rent is not bringing enough returns for the property value.  Current property value is about $350K and rent is $1350 with an association fee of $270 per month.  I feel like I am loosing out on this.  Please share some of your ideas.

[John Warren]

@Viji M. congrats on having a paid off property. This is not the kind of problem most Americans have! In your shoes, I would ask several questions. Is the goal with rental properties to create immediate financial freedom, or is it to provide for retirement as part of a diverse investment strategy. If you decide to re-deploy the capital, what is your tolerance for investing out of state? Do you have interest in purchasing larger assets like apartments, commercial strip centers, etc? 

My personal investing philosophy has revolved around leveraging the equity I have/have created in order to purchase more properties. I am a big fan of this "value add" investing strategy, but everyone has a different risk profile.