Sell my fixed up condo or continue to rent it out?

[Christine I.]

Two bedroom, two bath condo in Ventura, CA. Paid cash for it in 2009. Great location. It was trashed by tenant not to mention old and outdated (built 1965). HOA fee will be $470/month. 1180 Square feet. I've spent approx. $60K on complete rehab and update that will be completed in 2 weeks.

Projected rent is $2,400.

It has been appraised at $420k but is worth more now after rehab plus prices have gone up since appraisal was done. $460k is realistic.

If I sold I have a stepped up basis so would only pay taxes on anything above $420k. Honestly not sure what I would do with the money-I know that's a nice problem to have. 

If I keep it I have a very high HOA that cuts into my profit.

I'm hoping for constructive comments to help me make a final decision here. 

[Joe Homs]

@Christine I.  you are correct on the stepped up basis.  The next question you would need to answer is are you willing to continue to be a landlord?  You can always hire a property manager if need be.  If you are not sure about investing here, then out of state is a whole different animal.  You have the opportunity now to make $460-$140K = $320K tax free. The question is do you want to pocket this profit now that the market is hot or wait.  If you wait then how long will it take you to make $320K from the cash flow you are getting now?  Let's just say you are cash flowing $1K a month or $12K a year.  $320K/12K = 26 years.  You are better off selling this now and buying something else that will cash flow or maybe even lend your money to a flipper at 10% interest if you are not into rentals.

Sorry for your loss.

Good Investing...