This would increase my ROI to 43.5% and Cash Flow $667.25 a month, but I would have to save for my next property rather than using equity in some way.I am leaning toward option 2 because I like the idea of being able to pull the cash out to use as a down payment toward additional properties rather than use an additional loan with the equity like option 1 for additional properties.

After (2) 3-9 month travelling professionals we have a long-term local professional that likes convenience.  30% premium rent without  turnover. 

Some will surely choose the convenience of urban life.

I was leaning more towards suburbs, higher quality tenants, and hopefully some appreciation, at the sacrifice of cash flow.

Originally posted by @J Scott:I generally get rid of them.Thats where I was leaning towards, it seems to be easier and more cost effective.

The building that relationship with locals is really how you get good deals on a recurring basis - just something to keep in mind.Bonus)  Would require more down - if it's between 15% down on an SFR and 25% on a duplex I probably lean towards the former.Really great stuff man - thanks for sharing in such a complete way. 

This leans towards bad debt since there is a chance of not being able to pay it off when interest hits.

I agree with you Peter, in addition you should be able to lean on your realtor for advice.

I am pretty heavily leaning towards renting it out, but I'd like some more eyes on it in case I am missing something. 

I am leaning on the side of just selling it but wanted to see what everyone thought about this.