An important consideration is – how much tax will you pay when you sell it? If that is a tax-free sale, it sways the decision towards selling. If you have to pay %25 capital gain tax on the whole thing, that sways it towards keeping it.
$1100/month forever is a pretty friggin’ good windfall.
I think I would consider taking out a small HELOC on the property to fix it up and pay the property tax, then send all of the rent to pay off the HELOC, and write-off the interest. You’d have it paid off in two or three years, then would be getting $1100/mo in (pre-tax) income.
