Sell or Hold investment property

[John Emmerich]

Trying to find some advice about my situation with my rental property. We purchased a 3 bed 2 bath home (built in 2009, 1300sq ft) back in 2015 for $199K and lived in it until 2019 at which time we decided to rent it out. The mortgage/taxes/insurance is about $1250 a month and rent is now $1900 a month so it is cash flowing really well. It has appreciated at nearly an 11% rate since we bought in 2015 and is now worth around $340K. We still have around $60K in student loans at 3.7% interest rate that need to be paid off and we are thinking about starting a family next year (less income from spouse and less time to play landlord). It is a great home in an up an coming area but I am struggling to decide whether to keep it for the long haul or take the amazing profit and get out. One big factor is after next May we will no longer qualify for the 2 out of 5 year exemption for capital gains tax. So instead of just having 10% closing fees we will have an additional 15% off the top. I also don’t think current salaries in our area can support how expensive housing has become here….on top of that this whole covid economic climate is a bit unnerving. Anyway any advice on my situation is much appreciated!