Looing for advice on whether to sell my townhouse or rent it out

[Shelton Yuri]

We have a townhouse in Seattle for 4 years which interest rate is 2.75% but We only paid 5% down payment so we have PMI. The monthly payment is around $3600. We lived there less than 2 years, and the rest of time is rented out. If it is rented out, the rent is around $3700.

Recently we bought a sfh which interest rate is 6.375% and paid 30% down. We thought keeping the old townhouse because it can generate positive cashflow or maybe a little negative cashflow if something needs to be fixed. We know being an landlord is a job, but if we hold it for long time, it can be a decent income.

However, now we are thinking since the interest rate for our sfh is 6.375%, why not sell the townhouse and pay the principal of sfh? The return rate of townhouse won't be able to exceed 6.375%. Holding the townhouse sounds more like a bad investment plan.

Any advice is appreciated :)