Should I rent or sell my 'starter home'?

[Mark Costa]

Our family is growing and we're looking at upgrading to a larger home. 

I'd like to understand the opportunity of keeping our current home (financials below) as a rental and see if that makes more sense than selling. 

The Financials

• Purchased our "starter home" brand new in 2010 for $166,490
• Zestimate is currently at $281,510
• Mortgage Outstanding Principal balance is $137,331.69
• Monthly Payment (PITI) is $1,159.24
• Rent Zestimate is $1,625 /mo

In case it's relevant, our budget for a new home is $450K and we have 25% saved for deposit. If we were to sell our starter home I would take that cash and put it right into the new home as well (resulting in a ~$240K mortgage.)

For what it's worth, this would be our first rental property. I'm not even sure what needs to be considered beyond this so please ask away. Anything you can do to help me come to a decision is much appreciated.