When is selling a rental the right decision?

Why would you get rid of assets you own that generate revenue? Personally, I wouldn't do that and use the income to to pay the house off. You are in a strong financial position if you have revenue generating assets and no debt other than your home mortgage. Being completely debt free is nice ,but in your case I would say carry the mortgage, use the income to pay extra, if rates go down in the near future refinance.

Either sell to acquire something larger to grow the business, sell to buy newer properties if you’re no longer able to depreciate the homes, or hold you place.

If it’s a rental that is causing you headaches that you cannot control, has become a money pit, or unprofitable due to insurance costs and flaky tenants, then sell.

It does not sound like any of those items apply.

Keep it. It’s a great hedge against a financial market collapse and a store of wealth. Plus I am willing to bet that when the economy craps the bed, rentals go up (because people can’t afford a mortgage).

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It doesn’t seem that the rentals should go, but can you give some details on how/why you have a mortgage at 8.25%? How long have you had that and why have you not refinanced?

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Recently moved and had to pull that out at the peak of rates. Because the mortgage company dropped the ball, escrow was set to expire and we couldn't close in time...had to go to a small bank and do an unsecured loan instead forcing the higer rate. I was supposed to get 30 years at 6.99% but Gum Tree Mortgage fricked up. Apparently some regulations have gotten tighter and they have failed to execute inside the standard time window. Becuase there was nothing on the market and moving was reuqired, I couldn't be picky and had to take the bullet.