At least it's out in the open now.

I now rent this property out to students at a nearby university.

For me, Seattle is too pricey for me and, at least for now, the returns don't make sense.

At $5k/month with a 40% expense ratio, you're at a 21% cap..

I am working with several investors that are building with Black Tip.

So, let’s RATIONALLY take a look at the three possible scenarios.1.

If your priority is cash flow, then you need to look at markets that support that.

This is how I would look at your returns. $360k equity (based on your estimated loan balance and estimated transaction costs if you sold, this is not calculating capital gains taxes but that would reduce your equity down to about $310k if you sold without doing a 1031 exchange). $8k cash flow (this will increase over time because you are in an appreciation market). $6k principal pay down (based on your current loan). $20k appreciation (based on 3% which is conservative, 4-5% is the historical average).

@Jason Proulx I think your missing the entire math of things here. 

Cost of capital is high right now.