Townhouse Property Question -- Rent or Flip? (Numbers included)

[Ryan Parsons]

Hi everyone, I'm new to BP but wanted to bounce my next move off of the wealth of knowledge here on the forums.

Right now I have a townhouse in the zipcode 55303 in MN. My mortgage has $63,000 left. I bought it in a shortsale for $89,000 a few years ago. The house is currently rented out for $1,000/mo, which is slightly less than average for the area, but it is located on the corner of a very noisy road, so I'm okay with pricing it lower to get renters. The current renters lease is coming up in June. I have no property management company at the moment. It cash flows $300/mo after all expenses paid (roughly $3,600/year pre tax). I have not refinanced the mortgage. Comps in the area have sold for $155,000 in the last 6 months. 

My question is whether I should flip it, take the profits and reinvest in another property, possibly buying a home at auction with the cash; or should I keep renting it out and look for long-term appreciation and hopefully pay off the mortgage? 

I would love to get the groups thought process for knowing what to flip and what to hold. 

Thanks for your thoughts!