Look at it this way: if you had the money right now, would you buy the townhome as an investment property? If not, then I suggest you sell it and use the equity to buy a solid investment for a better return.
Definatly not a good investment. It will have negative cash flow long term. The value of the property is far to high to ever work as a rental.You should sell and put your equity to work for you.
Your $177K equity is presently cost you $1474/month in lost income based on a opportunity value of 10%. If it is saving you 5% on your mortgage interest you are at a negative income of $737/month before any expenses on the property.
If you rent for $1700 - 50% expenses (long term) - debt repayment - lost opportunity value you would have $1187/month negative cash flow. You would need an appreciation of 4.5% annually to hope to break even when you sell.
With the upside of selling and huge tax saving selling now plus value so high I would take money and invest in cash flowing properties. Don't hold for appreciation as it looks like you already got a good amount.don't be greedy it could bite you in ***. My neighbor did this in2007 and still holding a house that will never get to level it was because he wanted to be greedy. I took my 100k and ran. He got nothing other than more mortgage payments and lower valued home.
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