RE Portfolio Advice

[John P.]

Here's my current portfolio. I’m looking for advice on whether to sell and move into better cash flow properties:

Property 1: Florida SFR 3/2 (paid: $183K, worth $121K; rents for $925/mo.; own F&C).

Property 2: Florida SFR 4/2 (paid $234K, worth $175K; rents for $1000/mo.; outstanding mortgage = $164K @4.5% Fixed 30 year).

Property 3: Florida SFR 4/2 (paid $169K, worth $200K; rents for $1300/mo.; own F&C).

Properties 1 & 2 were acquired with lease options in place near the height of the RE bubble in '06 and '07. Fortunately, I received large upfront option payments and monthly payments with built in cash flows (approx. $200/per month) for the first 2 years of ownership which helped mitigate losses on these properties. The purchase options expired after the bubble burst and I turned these properties into rentals. The values have risen but will likely never return to the price paid. Lots of lessons learned here...

Prop 3 was acquired in 2004 before the bubble and has been rented out for the last 6 years continuously with the same tenant at $1300 per month.

With depreciation, mortgage, taxes, insurance, maintenance, etc., these three properties break even on an annual basis. There's not much opportunity to increase rents or reduce costs on any of these properties at this point. 

I've been content to keep these properties rented out, managing the properties myself to at least break even, while the FL SFR market increases in value. I'm not sure these values will increase much more so I'm contemplating selling all three properties and re-investing in better yielding properties closer to home (Indiana).

I appreciate any thoughts...what would you do?