Numbers not lookin' good on my OO-soon to be rental. HELP!

[Adam L.]

Hello BPers! I am looking for a little bit of advice here. I bought a house in Valdosta a couple years ago with a VA loan (no money down) and now it is time to move. My plan when I bought it was to rent it out when I left; however, that was before I knew too much on the whole RE business... Now I did some numbers and it doesn't look so good. Please help me out with some advice.

Purchase price: 177,000

Projected Rent Income: 1350

Mortgage: 819.71

Taxes: 158.50

Insurance: 76.70

Current overage on Loan (Bank applied): 27.65

Ppty Mgt: 135

Vacancy: 67.50

Repairs: 67.50

CapEx: 135 (Probably a little high as the house was built in '09 but better on the safe side)

Total Income: 1350

Operating Expenses: 509.35

P&I: 978.21

Total Expenses: 1487.56

Cash Flow: -137.56

That is not what one would call a good deal.  However, I have not built up enough equity to make it worth my while to sell it and the house has not appreciated since buying it either.  Holding on to it pretty much guarantees I am losing money other than the tax advantages and future appreciation/loan payoff.  

The way I see it, if I sell I lose about 10K (between the house probably selling a for a couple grand less than I paid, closing costs, and commission) which means I would have to own the house about 6 years before I reach the 10k mark.  So with that in mind I would rather rent it out and lose on a monthly basis and sell on an up market (likely to go up in a 6 year period I assume) than lose 10K now.

Am I looking at this properly?  If you guys were in my position would you take the monthly loss or just sell it and take the hit on the sale?

Thanks in advance, folks!