Should I Sell My SFR Rental?

[David Drew]

I'm trying to understand if my SFR is worth holding or selling. I'm in Binghamton, Broome County, New York. My goals are to buy and hold high cash flowing property and manage flips for cash for down payments. In order to buy more properties, I need more cash. Should I sell my SFR to get more cash for another, higher cash flowing property? Should I leverage a refi?

Here are the circumstances: 10yrs left on 15 yr mortgage. Rented for $1400, monthly PITI payment is $1200, good tenant who pays on time and covers all utilities and maintenance. I paid $130k in 2007, property could be sold fast for $110k, maybe $120. I owe $85k. Cash flow, on the surface, doesn't appear good, but ~$500 of the monthly payment goes to equity. I pay tax on $1400 per month, of course. Pretty low maintenance over last 2 years (I put about ~$1000 in repairs)

Pros and Cons of holding:

Pros:  Good tenant, 15 yr loan means high equity payments, little worries, tenant may want to buy the house.

Cons?:  Low cash flow.  Cash out refi would only give me ~$25k.  Selling might leave me with ~$30k and I can use that on a dp for a new property in the 50-75k range meeting 2.5-3% rule.  House needs a new roof.  

I'm torn.  Please let me know what you think.