Sell - Hold or Refinance

[Scott F.]

Tenant leases are up at the end of month debating keeping it as a rental or selling.  If I keep it as a rental I might look to refinance.  What would you do?  Data below.

Property I've operated as a rental for 8 years or so. Bought for 225k and have roughly 172k on the loan now. FHA ARM originated in 2010 currently has 3% rate changing in October 1% max increases each year. 1.75 + Yearly CMT(2.06) = 3.81. Rents are $1,440 with a water/sewer as is customary in the market of 180$ Current mortgage w/escrows is $1,090. So cashflow is roughly $170 without reserves for expenses. Real estate agent thinks he could sell it for gross $300,000 after selling expenses commission & prep work proceeds would most likely by $280,000.

I think I can get similar rental rates but in the face of increasing rates eating up some of my cashflow(also real estate tax abatement is starting to phase out slowly)  I'm debating selling and looking at properties to 1031 into.     

[Justin Fox]

I'd definitely lose that property for 50+ years worth of cashflow.