Swansea: Should I hold, raise, or fold?
Sorry if this is too long - I'm new here!
My question is about whether I should continue renting my property at the current rate, terminate the lease and try to raise the rent (may get ~$500 (40%) more), or sell it (may net ~180k if sold now).
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Background:
I have a rental property in Swansea, at the north end of the neighborhood, backing to the train tracks. It's a large house, about 3,000 square, with the front built in the 1800's and an addition on the back built *70's?*. These comprise 2 bedrooms, one bathroom, the kitchen / laundry area and two large family areas. The basement is a bit of a rabbit warren with a sitting area, one bedroom and one bathroom under an 8' ceiling followed by 2 bedrooms and a bathroom that are closer to 6' 5" ceiling height. We call those "Jack and Jill" zones for fun. The front part of the house is Victorian, high ceilings, ogee arch, wood floors, thick walls. The rest is generic.
It's nice as a rental but would require a special buyer as a primary residence.
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Current State:
We have a month-to-month renter who has been there for many years so the property has wear and tear. They now pay on time, but it took us a couple of years to get that to happen smoothly. According to Zillow & Rentometer, there's a possibility I could bring in about 40% more (~$500) per month, but I'm not sure. I'd hate to terminate only to find out that I can't get more and then have the uncertainty of a new renter and new rent payment struggle.
This is currently a lower-income neighborhood with a potential to gentrify (or die off depending on who you ask) over the upcoming 5 to 10 years due to the i70 cut and cover. Regardless, this property will always back to the train tracks so I'm not sure what its long-term potential is in that light.
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So... in your opinion, should I:
Stay as is with current renters?
Terminate the lease and try to raise the rent? If so, should we also sink some money into it for new carpet, updated cabinetry and fixtures, and other cosmetics?
or
Terminate the lease and try to sell it to another investor? I'm considering this option for a couple of reasons, one of which is I'm not convinced that it will ever be worth a significant amount more than it is now. There's no moving those train tracks. And, if so, do we polish it up or sell it with its blemishes?
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If we stay, I am interested in property management. If we sell, I'd like a realtor who is willing to hold out for a high price.
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Thanks so much! I'm new here and look forward to interacting with you all as we change and grow our portfolio.