You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.
The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.
15 years from now, prices might just be the same they are now.
You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.
