help making a hold vs sell decision

[Michael Delpier]

Hey BP brain power!

I need a little help making a decision.

My renter is moving out, so do I sell, or get another tenant?

The property is a condo in California.

Current value = $560K (equity = $435K)

Rent = $2300/mo | HOA = $480/mo | Tax = $250/mo | Other fees/mgmt = $200/mo

Cash flow = $500/mo

I could move the equity to another properties(s) using a 1031 exchange. The issue is finding a deal that makes sense. I do not want to be forced into a property just because I need to hit a 1031 window.

What this would mean for me is, either finding another property(s) in CA, or move the equity to Houston. This is either 4-5 houses or 1-2 small multi families in the Houston areas I have been watching.

The big issue is the tax.

CA has Prop 13 which limits my tax value to the price I bought 11 years ago.

Moving it to TX would add about $10K/year to what I already pay in on this condo in CA.

I could also keep the condo and use a HELOC to buy another house here in Houston.

Why I like the condo. - It has low tax, is a great location, and has great amenities. I am slightly emotionally attached because I love the place and it was my 1st property.

What I don't like is a very well founded lack of trust with the HOA. Seems to be cleared up now, but $6M/yr in HOA dues is a lot of cash to trust someone with.

So, what say the smart people here on BP??? Keep and rent, or sell and buy something new?