Seller finance with AITD or keep as rental?

[Paul Murch]

Bought this 3/2 in Modesto, Ca in 2008. I planned to keep as a rental forever and now thinking about selling with wraparound mortgage. Breaking even right now on the cash flow. Rents haven't moved in 6 years. Would like to use equity to purchase another rental. HELOC will only get me about $20k. Selling could get me $30k and a cash flow, but I lose some of the tax benefits. What do you think?

FMV: $180k

Mortgage: $121k

Rent: $1095

Payment: $616

Tax/Ins/Prop Mgt.: $280