If you can make this home work for you, without straining your finances, it could be a springboard for future investments.Lastly, always trust your gut.

However, I'd like to emphasize that renting to friends or family members could potentially strain your relationship if they fail to pay rent or fall behind.

Theoretically you shouldn't have to decide on which homes to sell if the goal is to rotate through your inventory. 

.- The property management company should have a system that evenly rotates all units.

I also just checked out the podcasts and am going to start incorporating some of those into my rotation.

But you can literally keep as much net profit as a 40 unit a year flipper with a slowly rotating portfolio of 10 -15 properties.  

Keep the property to a high standard and hire a management company that treats your renter like a resident, not like a rotating money machine.

They seem to rotate/lose people quite frequently.

I worked in the rental industry here for 5+ years - and have seen companies use base line seasonality rates for large blocks of time, companies use weekly rotating rates, and then I have seen software, ex: Beyond Pricing, that constantly pulls comparable properties and changes the base rate daily to always stay the most competitively priced. 

There have been some lenders have issues related to contractors completing projects and this can cause a big strain on their ability to "work with you" if you are not able to refi in the time frame they originally quoted on completion.