Sell or Rent a new build townhome?

[Leland S.]

I am nearing completion on 4 townhome builds I was intending to short-term rent in Nashville. However, due to GC incompetence, I will not make the deadline to get the permits for those townhomes anymore. I currently own a SFH as well that I short term rent while I'm away a lot of the year (owner occupied).

I'm looking for advice and how to approach determining what I should do with my portfolio now:

1) Use 1 unit as owner-occupied STR and convert my other SFH STR into a long term furnished rental for corporate or nurses. This is my baseline strategy since this unit will cash flow much greater than my SFH being that it's close to downtown and is a nicer place.

2) Rent or Sell the other 3 townhomes? 

This is my ultimate question. Given the other 3 townhomes will barely break even, if at all, on long-term rent, should I just sell them or keep the low-interest debt for equity growth? 

I'd like to select a strategy that will increase my chances of getting further deals. Obviously cashing out gives me more cash on hand, but kills me on taxes and gives me no tax deductions. I'm also not sure how banks consider income-producing debt against you while calculating your ability to get more debt. Over the next 5 years I think there will be a lot of equity growth in that area as it's being heavily developed.