Phoenix - Sell SFR and cut losses or hold the property

[Brock W.]

Hello BiggerPocketers,

I'm seriously considering selling a SFR, but want to get a sanity check from you.

The property: 1150 sq ft, 3/2 detached home, 2 car garage, Estimated value $140K-$145K

The money: 2 years into a 30 re-fi, current principal = $128.5K

PITI: $809, HOA: $58, gross rent: $950, management fee 8%, city tax; 1.75%

So rent minus deductions is $857 - $809 - $58 = ($10) monthly cash flow.

That assumes no repairs or vacancies (LOL). If I add some money into my spreadsheet for repairs and/or a vacancy, they still look bad even if I up the rent $50.

The place currently has a good tenant who just renewed for a second year. Their lease is until next spring.

The dilemma: 

1. Hold the place and hope for rising rents and/or market appreciation

OR

2. Sell the place when the lease is up and possibly only break even on what I owe.

I'm leaning to 2. Why?  I'm assuming that rents will not climb significantly in the area. We also seem to be past the big market appreciation that PHX has seen since 2011.

So folks, I'm trying to "trust the numbers". Do you think my reasoning is sound?

Brock