Unique scenario, what would you do?

[Shawn Trout]

Ok, so maybe its not completely unique because I have seen a few other similar posts but none that seem to match up exactly to mine.

I'm a newbie looking to get into the rental business. I currently own a SFH that I occupy. I purchased the home in 2007 for 165k with today's value in the 170k's. The original note was a 30-year at 4.5% interest. 3 years ago i refinanced the home into a 15-year note with 2.875% interest. I currently have 10 years left on that note and a balance of 93k (i made a few extra principle payments the last couple years). I pay 1081.72/monthly PITI or 893.69/monthly PI.

I'm looking to purchase a different home and rent out my current residence. Current rental rates say I could get 1400-1500/monthly for the residence. The rental, in my opinion, would be considered low maintenance since it recently had a new roof installed, electric baseboard heating (no furnace to fail), and a new water heater installed 4 years ago.

So here's the questions:

Is renting it out with the current financing worth considering? my CF margins will be non-existant, possibly even negative using the 50% rule, but I'm building equity quickly in the house with the very low interest rate. 

Should I refinance the house as an investment property using 20% down into a 30-yr note with 4.5% interest? This would give me a PI of $669 and using the 50% rule, give me positive CF of ~$56/monthly (although it's hard for me to believe I will see 50% operating expenses with this house)

Lastly, should i realize the margins are too thin, sell the house, hang on to the equity until i find a rental that has better margins? (although they seem few and far between.)

I apologize for the length of the forum question but wanted to be sure you Gurus had enough information to make an opinion. Thanks for Reading

Shawn