Advice Request - Keep Renting or Sell Property

[Alex Babayev]

Hello All, 

I have a dilemma that I wanted to run by you all.  

I have a 3BR 2BA 1,200sq ft property that I bought 1 year ago and have had rented since. When I initially bought the house I did not spend any money except for my initial investment 

Purchase Price was $110,000 down payment amount was 5%. Out of pocket initial investment was around $14k.

Property has been rented for 1 year for $1,250/month,Monthly mortgage and all expenses is $710. Positive cash flow from this property has been $540/month $6,480/yr.

Now current tenants lease is expiring this month. I come to my dilemma of Should I Remodel and Rent or Remodel and sell. This question is important because depending on which route I take the renovation budgets will be different. Remodel and Rent remodel budget will require about $3.5k investment. Remodel and sell option will require $8k investment. 

I am scared that I don't want to put more cash into the property for repairs , have the property rented and then have tenants ruin the remodel and then have to invest more money. 

Price appreciation has not been great in this market after remodel and sell option renovation of about $8k I can probably sell the house around $135k.