Should I sell or rent my condo?

[Nick Salemme]

BP community, I’m having trouble deciding whether to rent my condo or sell it. I’m going to lay out all the numbers here and hopefully some people will chime in with their thoughts. 1 bed/ 1 bath condo in north New Jersey (~10 min bus ride to midtown Manhattan) May 2016 Purchase price: $270k Down payment: $54k (plus 10k in closing costs) Current market value (best estimate): $325k Mortgage remaining today: $205k Cash flow per month as rental: $300 The way I am looking at this is I am deriving my “net equity” (net of selling closing costs) to be: $325k x 94% = ~305k, less 205k (mortgage remaining) = $100k net equity. Therefore, my RoE on an annual basis is $300 monthly cash flow x 12 = $3,600 divided by my net equity of $100k = 3.6% On one hand, it seems like I could use that $100k elsewhere and likely beat 3.6%. On the other hand, the location of this property has seen very consistent appreciation and over the long-term is highly likely to continue going up in value at a higher rate than most other areas of the country. What are your thoughts?