To sell or rent owner occupied home near Colorado Springs

[Kyle Myers]

Our house is in a very desirable location in Manitou Springs, outside of Colorado Springs. We put in about $35k in upgrades in the house over the last 4 years and should be able to sell it, making $40k after what we still owe and realtor fees. The other options is to rent with a $200-300 cash flow. Because of the VA mortgage we didn't have to put any money down. Overall property value about $400k and expected rent $2300-$2500.

What are the big considerations when deciding to keep the home as an investment, or selling it?

My gut feeling is the $40k could go as a downpayment in a much more profitable property.