Seeking feedback on whether to sell or continue renting.

[Susannah Bonn]

My boyfriend and I are wondering what to do with his rental that he lived in before we met. He bought a 3/2 in 2013 in Woodland, CA (near Davis):

Purchase price: 155k

Financing: 30 year fixed, 4% down, 3.25% interest rate.

Market rent: 1,450/month

Cash flow: ~ 330/month

Estimated value: 260K-275K

We’re trying to decide whether to sell in the next year to avoid paying capital gains and some expensive potential repairs (we’re 5 years into a 15 year roof, have some dry rot under one of the bathrooms that could cost 5k to fix, the electrical panel should be replaced and brought to code at some point for $1500-$2K, and we recently had plumbing problems that uncovered orangeburg main leach lines (50s era) that are falling apart and may last a few more years or maybe only a few months. Replacement quote for the main line from the house to the street is $5k).

Any advice would be much appreciated!