The question that remains to be decided: Do you "want" to sell it?
You may not be the type that enjoys being a Landlord.
In that case, selling it could easily be justified.
From a basic outlook, it's a 7 year old home, and right now may be a good time for you to cash -, opposed to 2013 simply because at that point, the roof and A/C will be "middle aged" and many of the features that look "updated" today, may not look updated in a few more years (including the granite counters, the updated hardware you have, the back deck and fence).
Those features all show well today, in their prime. Additionally, the appliances would be showing signs of aging and dating at that point.
Collectively, by waiting a few more years, you may see a few more dollars in overall market "appreciation" and your equity would still increase by having tenants pay your mortgage note, however you could also be approaching the point where you run into issues with value by "outdating" the Home-Buyer's needs at that time. Therefore, it may be closer to a wash-out, and you'll simply have spent a few years managing an asset.
I think that house for you is a good, safe investment as it stands. It appears to be bringing you over $400 per month in positive cash flow.
A couple suggestions/options here to choose from and review with your Realtor:
1.) Refinance your note with today's low interest rates, and take advantage of a 10-year or a 15-year mortgage note so all of your rent money goes directly into paying it off. Then, hold on to it for at least three years while your equity grows and your refinance fees are justified.
2.) Continue operating as-is, and put your cash flow into another investment, or simply use it to "buy down" the principal on your current note.
3.) Sell the house now while it's freshly marketable and while the "First-Time Home Buyers" are in pursuit. (this will require a deal be made with your tenant to cooperate with Brokers, live clean, and be ready to exit with a 30-day notice). Also, first ask your tenant if they would like to buy it!
Anyhow... let me know if this helps!
And, feel free to call or email me to schedule some time to discuss in more detail.
Keller Williams Realty
#1 Selling Broker in Austin
"Ask about our Signature-Series Listing Service"
Guy E. Gimenez ABR, CRS, GRI
CMG Group, LLC
The answer really depends on your schedule. You could list it for sale in early 2010 and hope that another investor is looking to buy in your neighborhood. The tax credit extension through April 2010 may be a boon for you. The season that is most active for selling is typically Spring/summer. If you want a comparative Market Analysis for your property let me know and I would be happy to send it to you.
Hello. I would first start by asking what your overall goals are - long term investment, short term cash gaine.... With the answer to this it will help determine the right course of action. I would be glad to help you with this. Feel free to give me a call to chat about it.