Moving: Sell old house and invest equity, or keep and rent?

[Jake Saliba]

Hi, I'm currently not a RE investor, but have poked around the forums a bit on occasion. 

I'm expecting my 2nd child next July.  We will move to a slightly larger house soon and I'm trying to decide whether my current house will make a good investment rental, or whether it's best just to sell and invest my equity in index funds. After reading a bit in the forums, the fundamentals seem marginal. I'm really just looking to maximize return here.

I have a very comfortable savings/investment balance of $100k+, so secure financially.

I am not handy and not looking to "buy a job." I plan to use property management/handyman services when needed. I might try the 1st year without property management just to understand the nature of the work so I can properly manage my property managers in the future.

Property:

• built in 2000
• 1836 sq ft., 2 floor, 3br/2.5ba
• updated/modern interior paint and white cabinets, likely tied for best appearance in my modest neighborhood
• dark espresso engineered wood floors, glued down - (bad for a rental?)

My assumptions - My projections for what I can get for sales price and monthly rent are only my best guess looking at other properties.

• Sales price - $200k-$210k
• Current mortgage - $136,500 owed @ 3.8%
• Monthly PITI: $866
• Vacancy: $108 (1 mo/yr @ $1300?)
• Short + Long term Maintenance: $130 (10% rent?)
• Property Management: $130 (10% rent?)
• HOA: $54

Above assumptions would yield: Cashflow: +$12/mo @ $1300

So I'm breakeven after expenses. I might be able to get $1400 a month in rent if I can leverage the wood floors and new paint / kitchen to increase the perceived value to renters.

Are my assumptions good?

Is it worth it to do this for just principal paydown + appreciation with only moderate leverage?

What about my wood floors? This doesn't seem ideal for a rental. One bad renter could mess these up.

Thanks for your opinions!