Studio in SF bay area - keep or toss?

[Sophia Maler]

I'm a trustee of an SNT trust. The beneficiary is asking me to sell their current home (they live in it) and buy  them a better place. The problem is that both properties would be in SF Bay Area, so I will have to finance the second home, there is no enough cash in the trust for the all-cash offer even if I sell the current property.

I can get roughly $300K for the current property (after all expenses and taxes) or rent it for $16-17k a year (after all expenses).  I will likely have to assume a capital gain at the time of the sale (taxable to the trust at 20%). I'm debating if I should keep this property as a trust investment because it is so hard to fund anything for 300K here! 

Keep or toss?  

Thank you!