Should I Sell or Rent it Out - What Would You Do?

[Account Closed]

I have a question for you seasoned Investors.

We bought our first house 2 years ago - a really good deal on a foreclosure and we paid $84K. The same house was valuated at $135,00 from the outside only. Due to improvements inside and the shortage of houses in that price range in our area, I think I could sell it for around $140K. We bought a bigger house to move into, and I'm currenlty working on fixing it up before we move. My RE agent thinks I can get around $1000/month for rent and our mortgage payment (with escrows) is around $475.

What would you do? Would you take the profit and reinvest or go through the hassles of renting it out for the long haul? Or rent it out for a couple years and then sell?