Hello Nicole. I'm just starting out in REI myself. I bought a 2-unit that I occupy in Syracuse, NY, and I've been able to increase my rental income due to some househacking. I embrace the learning process of being a landlord because every step of learning will make it easier for my next deal, and the deal after that... all the way until I'm able to quit my job and have my financial freedom.
Now, maybe the buy and hold method doesn't personally suit you, and that's what you're learning. It's all good: there's several strategies of REI that may suit you better. And at least you can say you did it, though, which is more than what a lot of people who stood on the sidelines can say. So sell the house, stack your paper and take time to be educated on the other REI strategies.
I agree with then other posters that you absolutely should not upgrade that basement... unless you know for certain you can recoup it and then some when you sell the house. I wish my tenants would try to ask me to revamp/finish my basement (many aren't here in Syracuse) because it's cold, and your house's basement looks a helluva lot more neater/cleaner than mine's. You'll find that many tenants are under-educated in how certain things work with a house, and the suggestion about insulating the basement door another poster made makes total sense.
