Hot market: sell or rent?

[Cristina Ruffini]

I own a condominium in San Diego  I have low mortgage payment and it would cash flow nicely. 

I also have quite some equity.  Should I keep it and rent it or should I sell it and with the cash buy something later when conditions are better for buyers?

My HOA president is super hard to deal with. And no meeting ever He act as a dictator. This is also to keep into consideration.

[Brian Schmelzlen]

@Cristina Ruffini 

How long have you been living in the condo as your principal residence?  It sounds like the tax reform bill is going to pass, and it changes the capital gain exclusion rules under Section 121 so that you have to own and reside in the property as your principal residence for 5 out of the last 8 years.  I am assuming that if you plan on selling, you are counting on it being tax-free.

Personally, I think the San Diego market is going to continue to appreciate well over the long-term.  There will be bumps in the market, but San Diego has a lot of good fundamentals.  If the property has a positive net cash flow after accounting for all expenses, I would keep it and rent it (you would have 3 years to sell it tax-free (except for depreciation recapture) if you change your mind. 

I would try to use the cash-flow to build up a down payment for a new rental (during one of the bumps in the market where conditions are better for buyers).