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.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing