Should I Rent or Sell this Townhouse?

[Jay E.]

I live in a townhouse in a great, central location in Miami that I purchased about 3 years ago for 317k, with $245k remaining. It's a two story, 3bed/3bath that's within walking or biking distance from many restaurants and shops in Coral Gables. The neighborhood is nice with remodeled SFH's being sold for $600-$799k. We're moving to a new home, and debating whether we should hold/rent this one, or sell it.

Our mortgage expenses are $2110/month which includes PITI and HOA dues of $225/month. The property has many new (less than 3 years old) larger expenses such as new roof, tankless water heater, AC, washer/dryer, dishwasher, range oven, and 2 new toilets). We can realistically rent it for about 2,400/month, or sell it for at least 370k.

If we rent it at $2,400, we'd cash flow $290. However, if you consider 10% for vacancy and 5% maintenance/assessments, I'm negative about $300 cash flow/year, with the benefit of holding it being in the $6,300 in mortgage paydown assuming 0% appreciation. We can easily weather maintenance costs or vacancy for several months if we had to.

If we sell, we would have about $90k in our pockets assuming 10% closing costs that we could use towards looking for another SFH that DOES cash flow. Not sure if it matters, but since some people factor taxes into the equation, my wife and I are reasonably confident in our job security, and are in the 32% tax bracket this year.

Would you rent or sell in this scenario?