Should I sell my House or Keep it?

[Israel Flores]

Hello everyone! TIA for any insight here. A bit of background I am trying to decide whether to sell my current home or keep it for different reasons.

Option 1- Sell the house and pay off majority of debt we have from the proceeds around $90k. 

Option 2- Do a cash out refi and pull around $50k max of funds to put towards debt but be able to keep the home as an investment property. Property would at least break even or cash flow about $100. Location is great, good schools, neighborhood etc..

On the one hand we would really like to clear out our debt we owe but on the other hand we feel we might be losing an opportunity keeping the home as a great investment. Or perhaps we are missing another option.