sell one house and buy two?

[Malachi Chapman]

Hello there,
I am a Primary residence homeowner here in DFW. My home was purchased for $199K in 2019, now almost 4 years later the house is worth 300K market price. We would receive about 125k in equity if we were to sell. We are looking to attain a slightly larger space (3 bed, 2 bath) and considering selling. The hold-up I have is whether I should try to grind and get the savings for a down payment so we can keep this home as a long-term rental (would be able to receive $300 cash-flow monthly), or should I go ahead and sell and use the money gained and purchase two homes? One primary residence with a 5% down payment and a long or short-term rental with a 20% down payment. Thoughts?