You are hopefully getting good cash flow, appreciation, mortgage paydown and tax benefits.   

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

For instance, Berea is a charming college town, but the combination of local taxes and less favorable price-to-rent ratios makes it less appealing for investment compared to other areas in the state.Agree here! 

I understand that I need to account for taxes, insurance, and other costs—Should I go with a LML and then do a refi later on?  

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

Also the school districts have been increasing property taxes in A LOT of investment properties thus eating some of our profits. 

I make around $110k+ per year, live off around $75K, have a mortgage ($1900/mo for rent, escrow, tax), around $40K in equity, and no other debt. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

There are rentals, fix and flippers, lenders, tax liens, note investors, STR, commercial etc.

Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.