Condo vs. SFD

[Jason Merchey]

I've got a free and clear condo, built in 2007. I bought it in 2010 for $200k. I was a little pissed when I learned that my Realtor - a dual representation situation - didn't clue me into the fact that I should investigate the HOA before deciding. Turns out the HOA sucked big time. Like, total criminal running the thing, bad finances, no reserve fund yet, dues kept artificially low, etc. We also had about 10% non-paying units due mostly to foreclosure. Incompetent management. You get the picture. This was a big disappointment being my first house, and the fact that units were going for $300-$350 three years earlier.
So perhaps no surprise - distressed ones were going for $120k in 2011. The average price was probably about $150k then.
Fast-forward to today: the HOA is cherry - patting myself on the back - and the number of foreclosures are down to about 3%. We have a good management company and reserves of over $100k. Gotta hand it to the new president and the new management company. One recently sold for $170k.
The place is fairly new and fairly well-kept, but the rent I get is $1,200 and the HOA dues are $330, meaning my cap rate is like 3-4% annually. It is fairly easy to get a tenant because the units show well and it's beach-close in Charleston. What I am wondering is, would it be better to accept a 4% ROI and feel comfortable that I know what the HOA is up to, I approve, and that things are probably going to be good there as long as the national economy doesn't falter, or, is it wiser to sell the thing for a clear $160k after expenses and parlay that into two SFDs in a different part of town that could maybe bring in $2000 gross. It will take time and money to trade to two, but I'm thinking maybe if they are in good condition and I get a warranty on them, I might could do a little better financially and well, the fact that I don't have an HOA to help me, I guess that's just something to deal with. Are two birds in the bush better than two in the hand?