Sell rental now?

[Bruce Reeves]

Playing around with my Excel spreadsheet and got to thinking about selling my rental property in the next few months vs waiting until it's paid off in Jun 2027. 

Have a 27k mortgage balance, sale price est at 415k. Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

If I can park the 388k ($415-27k) for one year at CD rate of 4.5% and then est 300k (after paying cap gain/depr recap) at 3.0% (assume CD rates lower) that interest income of about 24 months net of ordinary income tax is about the same as my current mortgage.

Trying to play devil's advocate and think why selling this year does not make sense. 

Pro - I avoid any future repair expense. Not a landlord anymore after 27 yrs!

Con - lose any possible property appreciation over the next two years. And "if" no significant repairs, lose the 600/mo cash flow. 

Am I missing anything significant in this thought process?

[Nathan Gesner]

I don't understand why you've owned an investment for 27 years and only cash flow $600 a month. A $400,000 home should rent for $2,000 or more, and shouldn't need $600 in monthly repairs. 

I get the feeling you don't enjoy being a landlord, so I agree that you should consider selling and investing in something that doesn't include tenants and toilets.