Sell or LT rent our vacation home?

[Lisa Fryer]

Hello BP community. We have a home we were planning on using for our personal vacation home but have since decided to either sell or keep for a rental. Here are the details:

2 bed 2 bath 900 square foot 1998 manufactured home on it's own land of .22 acres. It is in a gated community with community beach and boat launch.

It is in the rural town of Longbranch, WA. The closest town of substantial size is Gig Harbor located 30 minutes away.

We have paid about $75k total on this project. $20k of that is financed via our primary home's HELOC.

We think we can sell for around $130k. Our other option is to refi and pull out the equity and then turn it into a rental. If we take this option we would cash flow about $200 per month. I have talked to a property manager in the area and she said it usually takes her a month or two to fill a vacant home in the area if it is priced correctly. 

We would like to sell or refi as we need the equity to start development on a lakefront lot we own in a different city.

I can provide other information if I missed anything.  Any advise as to which route to take would be most welcome. Thank you!