Keep the house or sell it? Looking for thoughts on this..

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Hello fellow investors - Have a current dilemma with a single family property that I own and have owned for many years.

Do I keep it and continue leasing it, or do I sell it?

Here's the scoop:

Appraisal $695,000

Loan Balance $395,000

Equity $300,000 (minus transaction costs)

PITI $1890/month, no HOA dues

Currently rented for $3100/month

Cash Flow $1210/month

The numbers look pretty good, huh? The problem is that I have $775,000 into the house. If I sell now I'll put around $280,000 back into the bank as well as guarantee a cost basis loss of approx. $80,000. If I keep it I will depreciate the home as a rental, cash flow $1210/month which is considerable, and I'll hope (which I expect) the home continues to rise in value. Just another 10-15% in value over a period of a few years could get the cost basis back to break even, meanwhile cash flowing $14,000 annually during the waiting period to get to that point.

The dilemma is being able to get back a sizable amount of funds, or, alternatively I continue leasing and cash flow $14K per year. Not sure what else out there will generate $14K annually from a $280,000 investment, which is 5% (before factoring in after tax benefits like depreciation).

Looking for some thoughts as to this scenario, would greatly appreciate the insight. Thanks in advance for your ideas!