Paid off home Sell it or turn it into a rental?

[Jason Dalka]

We own a 3/1 in Akron Ohio, my mom's former primary residence. It's paid off. Worth about 85-90K with a little updating. Could rent for $800-900. 

Looking to generate cashflow through rental properties to help offset cost of my Mom's assisted living costs. 

The house isn't in a market that I would choose to invest in but we already own the property. Would you:  

1. Sell and use the cash to buy another property 

2. Rent it and get the cash flow

3. Rent it get then refinance to pull some equity out of it and invest in another property.  

Any input would be appreciated.

[Mike Dymski]

If the property has appreciated, be sure to check out the section 121 capital gain exclusion on the sale of a primary residence.  If you subsequently rent the house for 3+ years, you lose that valuable exclusion.