If you're happy with that number, i.e. you don't think you can get a better ROE in another area then all good.

The problem I see with your property is that you're only getting a 4% Return On Equity (ROE).

You could only pull out the $61k you have in the deal, that would bump up your cash flow $200+/month, but you won't walk with any cash and your Return on Equity (ROE) will be <7%, which isn't great.If your ARV is good, maybe this is better as a flip.

Period.I'm ok with an ROE on my cash purchases of 7% (basically ROI) but....

@David Roe thanks so much!

@David Roe thank you so much!

This is a bit like trying to figure out which overturned cup is hiding the marble, but proper due diligence on the sponsor, with the awareness that the sponsor can make or break the deal, can give you the best odds of the most favorable outcome. 

If this would still perform and give a decent Return On Equity (ROE), then refi and use the cash to purchase another property.

@Glen Gallo My understanding is the following:Federal long term cap gain rates vary from 0%-20% based on tax bracketCA long term cap gain rates vary from 0%-13.3% based on tax bracketAlso have to include depreciation recapture tax which I believe is 25%Commissions and closing costs are around 6% of sale priceLook at your return on equity (ROE) which is the NOI from renting the property divided by property value.

@Jack Yvars you need to figure out what your goal is, compare opportunity cost for renting versus selling, and determine what your ROI and ROE (return on equity) is for the current rental to see if you could do better selling and getting into a new investment