Sell or keep? Quick numbers!

[Ilya S.]

One of my two rental properties has a tenant leaving at the end of this month. The house appreciated since I bought it in April 2021, and I could profit a decent amount if I sold it. Was hoping that some of you could offer your thoughts on whether this house is a keeper or not. Cashflow is terrible considering asset value, but the house is great and is in a fantastic high-end neighborhood. My long term goal is to shift into owning an apartment building, but have not began to act on this plan yet. 

What would YOU do?

The numbers:

Cash in = $42,000

Current Owed Amount = $522,000

Market Value (conservative) = $700,000

Mortgage + HOA = $3600/month (2.75% interest)

Rent = $3800/month

Cash profit if I sell it, after cap gains* and selling fees = approximately $115,000