Hello BP Fam,

My lady and I own a rental in Moreno Valley, CA that we are in a dilemma of hold or sell - and I am hoping for some guidance or insight!

We currently owe $266k on the loan and the property is worth between $460k - $480k. It was built in 1980 and will need a new roof in the coming years. The monthly payment is $1,600 at 4.5% interest.

The property has been rented for two years, and before that, it was our primary home for many years. As such, we could benefit from the capital gains exception if we sell.

While it’s been rented for the past few years, it hasn’t been profitable because we had some large repairs to make (A/C change out, plumbing issues, etc.) that ate up everything we earned.

Since I am in the process of re-marketing for new tenants, I'm going to increase rent to market rent at $2,500 a month, which will provide a cash flow of $700 with Property Management (no including CAP EX, etc.).

My question to you all, do you continue renting and take the $700 with the expectation of future repairs, or take the $170k in profit and re-invest elsewhere?