Sell or hold condo in Atlanta

[Matthew L.]

This was my first and only REI deal back in 2013. It's a condo in Cabbagetown that I purchased to use as a rental. At the time I thought the numbers were good but I clearly didn't have a clue :D On top of not knowing to set aside a % towards vacancy and capex, the property taxes also jumped from around $1k to $3k because I didn't know that landlords paid different rates than occupants.

It still worked out in my favor due to a combination of great tenants, low capex, low vacancy, rising market rents and appreciation but my money isn't working as hard as it could and I think it's time to get a few better cash flow SFH. Just wanted to get some opinions.

Purchase price: $165,000

Cash outlay: $37,725

Current rent: $1,650

Gross income (5% vacancy): $18,810

NOI: $11,124

Cash flow after debt service: $2,006

Cash ROI: 5.32% :(

This looks even worse because I self manage so it would be pretty much break even if I ever needed to outsource management.

Recent comps are around $240,000. 45% appreciation in 3.5 years thank you very much Beltline development! After fees and closing costs I should pull out about $96k in cash if the market holds. The plan is to use that to do 2 BRRRRs in 2017. Am I missing anything or is it pretty clear that I should sell?