[turbo6bar]

Presuming 25% for expenses and $1100/month rent, capitalization rate is 8.25. It's not bad, but not great. Appreciation rate would enter the picture here. If your area is like North MS, prices are flat. The biggest strike against you is the fact you only have one rental. I like it either full bore (fleet of rentals) or empty. One or two can be a pain in the ass if you're not prepared to act professionally and efficiently. $5000 real profit and potentially greater paper profits are excellent when it's going good, but it's awful solace when things are in the crapper. I think you know what I mean. The tenant pool sucks ass right now. On the other hand, the cash flow is pretty nice.

You know there is no smart move. Just trust your gut. It's great you can't lose either way.

One thing you should consider is federal tax treatment of the home if you do decide to sell. Will the taxman consider your property an investment? If so, you will be liable for the 4+ years depreciation recapture, regardless of whether you took the deduction. The dollar amount won't reduce your bottom line significantly, but it is an expense to consider.