Should I sell my investment property or hold on to it?

[Cameron Marmon]

Hey folks, I am hoping to get some thoughts on if I should I sell my investment property or hold on to it.

I purchased the SFR in January of 2015 for $252.5K. In August 2017, it appraised for $316K. Due to the age, area, and the fact it is a 4 bed/3 bath, I think I can now get $325K+ for it. So I would get $100Kish in cash if do I sell and the gain would be tax free since I lived in it for 2 out of the last 5 years.

I leased the home in January of 2018 for $1,750/month. This is below market and my fault because I did not get the property available in time. When the lease ends, my tenant will be moving out and I could potentially get $2K - $2.1K in rent. However, my current mortgage payment plus HOA dues is $2,015/month, which will be going up slightly next year due to taxes and insurance. So I am looking at possibly a breakeven at best, though I know that won't be the case. Also, the finish out on the home is premium thus not ideal for a rental. If something does get damaged it will be expensive to fix.

I surprisingly struggled to find a qualified tenant. Could have been due to the time I got it to market, but I get the feeling this price point makes for a tough rental. So I will likely have to cover at least one mortgage payment, maybe two, due to the time it will take to prep the home and find a tenant.

Overall, the home currently does not pay for itself, likely won’t next year when the lease comes up, I will likely have to cover the mortgage for at least 1 month to get it re-leased, I’ll have to pay about $1200 to the agent to lease it, I won’t generate true cash flow, and the AC just went out so I am looking at a temporary fix until next year or replacing the whole thing now for about $4,600.

I think I know the answer to this question, but I'd like to get y'alls thoughts.

Thank you!