Rental property keep or sell?

[Travis Wood]

Hello BP community, 

I have a rental property I previously lived in for 10 years and have rented out the last 2 years. I have about 75,000 in equity in the property and it cashflows about $250 after all expenses (Maint, Cap Ex, PM, Vacancy) . The market is really hot here right now and the houses in the neighboorhood are selling at all time highs and in less than a week. So my question, would you take advantage of the market and not having to pay capital gains tax due to living there 2 out of the last 5 years and sell the rental property? Then use the profit to invest in  a couple of Brrrr's? Or continue to hold since it does have decent cashflow? Thanks in advance for any advice. 

[Jonathan Greene]

I would sell that in a second, especially since you are in a seller's market with values peaking. Don't you think you can use the 75k equity to go into a deal that earns more than $250/month and also take the win of doing so well on a house over the years? My best investments were always houses I lived in. I think it's time to cut this one, take the profit, and re-engage into one or two new opportunities.