My primary residence - rent or sell?

[Shaun R.]

I just closed on a rental property and once I get the renter in place, I've got to make a decision on what to do with the house I'm currently living in.  I have been planning on keeping it as a rental, but now I'm not so sure.  Help me decide which would be smarter.  

I bought the house almost 5 years ago for $180k.  According to comps, prices have gone up and with about $5k in updates I should be able to get $195k.  I currently owe $155k, so after everything I can think of, I should net around $25k if I list with a Realtor.  

My payment is $1118 and the house would rent for $1600/mo.  After I account for maintenance, capex, vacancy, and management (even though I'll be managing it for the near future) I would only cashflow $53/mo.  

When I ran those numbers, holding onto it as a rental didn't seem to be such a good idea.  

Whether I sell this house or rent it, I'm going to buy my next one through the eyes of a real estate investor.  I'll be looking for a good deal that I can force some equity into.  I'm buying as an owner occupant, but will move in 1-2 years and keep the property as a rental.  

So... what's the smarter play here?  I'm leaning more toward selling.

[Nam Tran]

I apologize for the novice question, but could anyone explain to me the post made by Thomas s.? I can't really work out how equity kills cashflow. thanks in advance!!