re: What is my current ROI? Am I making money on these rentals?

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Was your credit bad when buying the first one? I have a $225k home on 30 yr fixed at 4.50% and the note is $1464 and taxes, insurance, etc are all included in that figure!

No my credit was not bad, but this was common practice back then. The days of the liar loans.

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You are doing very well on those properties.

Considering you are going to have to recapture a lot of depreciation on property two if you sold it you really should just hold it as long as you are keeping it rented.

Real estate is not much of a cash business until you cash out.

Edit--You could, if you like the development, consider engineering a 1031 swap of property number 2 for a higher value property that then mortgage again or perhaps two units.

If, for example, it is worth $150K you could avoid taxes by swapping it for a property of equal or greater value. So if you could swap it for two $150k properties paying the same rent. You would need a $150k mortgage on the $300k in properties. If you could rent each of the new properties for what you get now you could pay that mortgage off in 7.5 years.