I purchased a home in 2006 during the peak of the housing bubble for about $500k. I re-modified the loan once in 2011 and putting $ in principal. It is at a stable 5.5% interest rate for 30 years. The home is rented and breaks even each year including repairs, HOA, etc. The home is now worth a little more than $500k again. I can sell the home and break even without owning nothing and not gaining anything.

Should I sell the home or keep the home? I notice the homes prices are rising. Besides the obvious what are the pros and cons of keeping this home? 

Any advice will help. Thanks.

The real estate market is poised to turn again. Unless your rent is above $4500 per month you are not making any money on the rental income.

If it is not a cash flow positive income property with rent above  $4500/month I would be getting rid of the tenant and selling asap. There is no way I see a 1/2M property as being a rental investment.

1. Are you breaking even with a PM?

I would definitely keep it. Think tax depreciation benefit, debt pay down, and now you’re finally breaking even. Next year you may be cash flowing 100/month. 

There probably is a correction coming, but that is for the housing price not the rental price. 

Hold it, sell at the next market peak. 5-7 years from now. You should be cash flowing a few hundred a month then, have another 10 percent paid down on your principle and the house will be worth more. Of course, you should only sell if you have another opportunity to cash flow in another property.  

But really it depends on what your goals are. 

How much do you owe on the loan. If you have significant equity you definatly need to get it out. Dead equity will kill your cash flow.