Advice on whether to sell house and invest or keep renting it out please!

[ATouchOfStuffing]

I currently rent out my mum's old house and get £800 pm in rent (obviously less when work needs doing which makes it a bit unstable to live on) and am now considering selling. When she died it was valued at £325k at the end of the peak in 2005. I know prices aren't great at the moment but I am thinking I may well get more if I invested the lump sum and lived on the interest?
Any advice on what to do would be great as I have now had 2 consecutive months of living on £500 and I can't see how I can do this without going back to work, which I would rather not do until DD is in full time school.

Thanks in advance :)

[ATouchOfStuffing]

Maybe I should re-phrase this as 'If I sell this house and get £250-300k what kind of monthly returns can I expect from investing it?'
Anyone?

[Ilovemydogandmydoglovesme]

Well assuming you can get around 3% return on average, your yearly income would be between £7,500 - £9,000. Would be between £625 - £750 a month. Can you live on that?

[ATouchOfStuffing]

I think it might be better than currently as at least it would be regular and stable - at the moment it seems every other month I have to take out hundreds from the rent coming in to pay off works on the house anyway (flood, broken skylight, new cooker etc) and it always comes when I have something huge at my end to pay
Admittedly I was hoping it would be nearer £800/900 pm in interest, but it sounds as though it will be similar if not better than I am doing with now.

How would you invest to get that return?

[ATouchOfStuffing]

Meant to say thank you for replying too! :)

[Ilovemydogandmydoglovesme]

You really need to find a reputable, independant financial advisor. Someone who isn't tied to one company but can advise on any product on the market. You might be able to find a better rate that way.

Oh and my fee is 5%!