Should I sell my negative cash flow investment property?

[Elke Cardella]

I currently own a house that has a negative cash flow of $3400 per year. I am trying to decide if it makes sense to keep the house or to sell it. I've done some analysis of the benefits of holding it despite the cash flow loss and figured that the house gives me a "net worth" gain of about $10k per year taking everything into consideration (future cash flow, the principal being paid down by renters, the increase in the value of the house where I've assumed only a 1% increase to be conservative). The challenge is that I've never seen this played out before. Does anyone have any experience with holding a negative cash flow house long term and the economics moving in their favor? Thanks in advance. 

[Josh C.]

With only 1% appreciation sell it if you can. You left out what's it worth and what you owe. If appreciation was at 8% the answer would be maybe, but at 1 it's a dog.