Should I keep or should I sell?

[Mary Jay]

Hi guys,

I have a house in Florida. Bought it in 2019 for 180K, now its worth 350k (My realtor says 400K but I am trying to be conservative).

It rents for 1.4K...Way under value. 

I have 2 options:

Option 1: increase the rent to the fair market value (probably 2K). The issue is, there is always something breaking, do I want to keep an assett where always something breaking? (May be its just the tenant, not sure. Changed the stove, plumbing issues few times a year. The roof leaked, fixed, but still leaking, so dont think it really got fixed. Struggling to find the roofer who will actually do a good job, the fence fell from the hurricaine, leak in the stucco, etc.)

Option 2: sell. 

The problem is what can I buy with 200K in profit? Not much.... In the Midwest only.. Plus, probably will have to do a 1031 exchange so will have to buy 2 properties in the Midwest. If I buy 2 properties, I will be able to get 3K for both  (1.5+1.5K for each ) in rent... 

3 k (option2)  is better than 2K (option 1)

What would you do?