Rent or sell

[Account Closed]

I've looked at some other posts in regard to making this decision, and have determined that every case is different. I'm just going to throw some numbers out there and see what opinions I get from all you smart people!

I bought a 1250 sqft 3/1 house (appraised at $108500, cape cod built in 1942, located just inside city limits) this past August for $92k ($3220 down, 30-year traditional mortgage at 3.875%). Mort/tax/ins is $689/month and my close friend (realtor, property manager, and owner of 8 SF homes) said when I bought it that it could probably rent for about $1000. It was a foreclosure, so it needs some work. He and I walked through and (with the intent to sell in mind) made a list of projects and an overestimate that came out to under $10k. He also gave me an estimated sale price of $130-140k.

A few questions for the more experienced:

Was this as good of a deal as I originally thought?

Is it better to keep it as a rental (and move on to the next place as soon as funding is available) or would it be more worth it to sell (in which case I'd stay long enough to keep gain tax free)?

Thanks in advance!