When does it make sense to sell a rental property?

[Joe Caiola]

The home has appreciated from $315K in 2016 to ~$450K in 2019, and my rent is cash-flowing positively. The area has exploded with development and growth, but as more and more new properties flood the market, I'm not sure if the growth will continue at this rate. One positive clearly is that that my equity has increased a lot. That said, when analyzing the total value of my equity compared to when I purchased it, the ROI actually decreased due to the amount of capital tied up in the investment.

I lived in this home for 3 years prior to just renting at the beginning of this year, and it's also in an "opportunity zone". So if I wait until 10-years of ownership, I can sell tax free (I believe). If I sold now, I still think I can claim primary residence though and avoid tax up to $500k.

Curious what some folks think makes the most sense. Take chips off the table and reinvest, refinance to pull equity out, or keep payment low (without refinancing) and just ride it out for years to come.

Appreciate any insight,

Joe