Sell or keep rental property

[Mooko King]

I bought a condo in 2006 at the peak of property prices, the prices have just started to come back up this year to the price I paid in 2006.  Last year was the first year I rented it out since I had to move out of the condo for a job relocation.  Currently I am renting it out for $1850 a month which nets me a profit of $2000 a year after paying off the mortgage, realtor fee, and all other expenses.  The current tenant is moving out and I'm trying to decide if I should continue renting it out or selling it.  Is this too small of a profit to keep it as a rental property or should I try and sell it now and recoup what I paid.  I am worried about unexpected expenses or vacancies, I am also worried if the market goes down again that I would be stuck with this rental property.  The unit seems to be easy to rent out from what I can tell but I'm not sure what to do.

[Steve R.]

I would sell now if you think you can come close to breaking even. If you really want a rental property, reinvest in the area you are living in now. You can take your time and find a good deal that will create positive cash flow while accounting for vacancies, maintenance, CapEx, etc..