Rent or Sell

[Chancy Hu]

A good friend just  inherited two rental properties and is asking me if he should keep them for rent or sell them. I haven't done any rental myself, so would like to ask BP. 

The first one has $1,150 income (all numbers are monthly), $130 property tax and insurance, $586 mortgage payment (for current month it's $278 principle, $308 interest). Mortgage principal balance is 92,477. Market value is about 178,000.   

The second one has $1,500 income (all numbers are monthly), $171 property tax and insurance, $911 mortgage payment ($502 principle, $409 interest). Mortgage principal balance is 144,864. Zestimate is about 246,500. It's in a nice area where has more potential for appreciation. Current tenant is willing to buy it for 255K. 

I would recommend him to sell the second one. My calculation shows a negative cash flow, but I'm not confident with my calculation. Any advice? Would a refinance lower the monthly cash out flow make a difference?

Thank you!!!