Keep as rental or cash out?

[Dawn Anastasi]

I went in on a 4 bedroom single-family home with another person. We rehabbed it, and tried to sell it, but the market just isn't there. So we're going to rent it out for $1500/month.

Contributions toward purchase and rehab are $68,000 him, $18,000 me. (Numbers rounded for simplicity.)

There are two options going forward:

a) He buys me out for $25,000 and keeps the rental for himself; he will pay me a small fee each month for managing (he lives 45 minutes away; I'm 5 minutes away).

b) We split the rental profit based on our % invested. (80/20)

There is no mortgage. Property taxes + insurance is about $375/month.

I'm trying to decide what to do. I'm kind of thinking to go with option B and do a cash out refi which would get me almost all the money I put in out, to do something else with, but not as high as the $25K which I could use to buy another single-family house for cash. (Plus, 1500/86000 = 1.74 which is kind of low for me.)