Sell or keep rental property

[Karen Casey]

Hi Everyone,

I have a rental property in Selma, Ca. I'm torn between selling it and keeping it. I feel like we are at the top of the market and I only owe $60,000 on it, but it will need a new kitchen and bathroom in the next 3 to 5 years. Part of me wants to sell and reinvest outside of California in a newer property. Any thoughts?

[Phil Z.]

Never a good idea to sell performing real estate unless your doing a 1031 Exchange.  You will get hit hard for taxes especially if the property has been depreciated to $0.

Do you need a lot of cash for some reason?  Are you not getting a good return?