Sell rental to buy personal home?

[Shane Benson]

What would you do? 

I have 2 rentals in Texas. I am currently living and renting a home in North Carolina. I want to buy a home here. Should I sell one rental house to buy a personal house?? 

The one i want to sell: Roughly 100k equity. Loses $500 per month. Could make it break even if i got a better loan and IF rates came down just a little bit. remodeled and in a good neighborhood. I am aware of capital gains that would have to be paid if I sold it. 

My other rental cash flows 500, so covers this one pretty much. 

Would need at least 40k to buy a primary, and we only have like 10k. So would probably take all of the equity and put it into a personal home. I am 23 if that matters. 

Thank you!