own a paid off SFH with appreciation, should i sell or rent?

[Gin Andrew]

Hello! thank you for anyone reading this and may leave a comment in advance.

I bought a single family home in Cincinnati Ohio, Mount healthy area in 2019. 74k to purchase, 26k to flip (from total disaster to be fully functional with new HVAC/water heater). 

3bd 3bath 1800sq with 3000sqft backyard .  I've lived here for last 2 years, and it is paid off now. I just got 200k for the home appraisal value of this house, but i believe 160~180k is the maximum it can be sold now in this crazy hot market.

the property tax last year was 1900$. current home insurance is 70$ a month. average rental here of similar house-near by area seems 1200~1300$ a month. 

This home is great for the first home owner and love the house itself with neighbor, but it is very loud with traffic noise. it is on uphill above 45 miles speed road with lots of crazy motor cycle drivers at night. I want to move to a quite area, but still near Cincinnati. 

I'm debating if i want to sell my current house and use it as a down payment for the new mortgate , or rent the current house and buy a second house as new primary home.

option 1. sell my current house (for 160~180k, 1800sq ft) and use it as a downpayment for the new mortgate (~250k, bigger than 2000 sq ft) 

pros- since I've lived 2 years, profit gain up to 80k is tax free. +plus, hassle free from the giving rent, with the better quality of life in a better neighborhoood (possibly) and being happy in the quite backyard.. ( I love trees and peaceful firework )

cons-  the basic living cost increases, including property tax (3000~4000$ an year), home insurance(100$) is higher, more unility bill possibly.

 2. rent the current house (~1300$ a month) and buy a second house as new primary home (~160k) . 

I'm in the middle of home equity loan process, and got 200k home appraisal and getting 160k as an equity (3% interest for 10 years. my fulltime job gross income is 78k now). with the equity loan,i can get another small house (~1200sq ft) SFH near similar area (but definitely quite area!)

if i try calculate the pure income rougly, 1300 - 160 (property tax) - 70 (home insurance) - 200 (approximate capital gain tax) + 100 (gardener + pest control) =  770

pros - passive income + the whole city is in development and growing, possible appreciation in the future. size+price of the house is in high demand for all new first home buyer + renter. keep primary living cost same as now. 

cons - all possible hassle/damage from tenants, very loud noise in backyard so not sure if any good tenant would like to live there long. losing the chance to sell the home with profit-gain-tax-free 

what shall I do? I don't know what I should do... thank you.