rental, refi or sell

[Mike Bell]

Hello, I am 25 and currently have an FHA loan on a 1400 sq foot 2 bed/1.5 bath town home that I occupy. payment is just shy of 600 a month with PMI and Escrow. Im looking to buy a home with my VA loan soon. My question is should I sell, refi or rent my current townhouse. average selling price in my neighborhood is 105k for the same sq foot but with 3 bed 2 bath. average rental rate is right around 1,00-1,150 a month. I currently owe about 86,000 on the loan. If I refi into a va loan it will make my payment under 400 a month not including taxes and insurance. what is your recommendation ?