Refi on my rental... disappointed with number

[Omeed O.]

Im trying to set my self to buy my 2nd rental. But I can't get my numbers to work and justify the refi.

Current rental paid in cash no loan on it.

Purchased for 70k comps are $120k.

Rents for $1300 a month. Same tenant for 4 years. I haven't raised the rent on him, he's been great but I've given him notice that rent is going up 3% a year from now on.

HOA,tax, insurance $800 a month

So I net $500 a month

My broker offer me 75% about $95k at 6.2%

He said my DTI is high and want me to pay off outstanding debts with the refi. About 40k in car and medical.

Leaves me with $50k after closing. And $600 a month in payments. And I'll be negative $100 on the rental.

Then on top of that I'll only have 50k to play with in Houston tx.

Would you do the deal?

Sell the home?

Do nothing?