Sell or Continue to Rent?

[Kerrie Racicot]

We bought a house almost 3 years ago as our primary residence. The house is in Arvada, CO and is in the #1 school district in Jefferson County. Due to job relocation, we moved a year after purchase and have been renting it out. Our current tenants want to buy it and I'm very inclined to sell it to them as the margins have been making me nervous (increasing property taxes and renting at a market high rate). 

Purchase Price: $400,000 with 5% down

Current Market Value: $465,000 (selling directly to tenants will involve no agents)

Current Rent: $3000/month

With increased property taxes over the last 3 years, our monthly cash flow is down to only about $90/month factoring in vacancy and maintenance. 

Do we take our money and run or am I missing the bigger picture here? Long term appreciation and stable, desirable location. I'm afraid that we won't consistently get $3000/month due to that rate being on the high-end for the area (although not the highest).