I agree the rents are a little too low considering you would be paying most of the utilities. 

My question is does it make sense to hold a single family in a market that the rentals are low compared to the sell price and focus on the long term value increasing or should I sell and have a clean start in a new state?

Don't be mad at a person who gives you a low-ball offer.We mad at the person who looks and never makes an offer.

I have a desire to buy more properties but low on cash.

I currently rent it for $650 a month would like to pay off this month (October 2018) but lenders want me to take more the property current value is 12,500+ Where can I find such low cost lending to aid me in borrowing 5k and payments over 24 months. 

Are there lenders out there that will loan with low/no Season period or am I at the will of the institution here??

@Neri Bermas regardless of what market you choose, with $50,000 capital to invest, I strongly recommend financing a better class of property than paying cash for a low end asset.

. $200 is a bit low in my opinion and leaves very little room for profit if you run into any unexpected vacancy's, evictions, or capital expenditures.  

@Nadine Delille So here are the options for low cash investors (just a few)Wholesaling off the MLS: need to double close more than likelyWholesaling: find your own deals via marketingBird dogging:  Might get money for any lead you find with your own marketing and turning it over to someone thats more experienced.Lease Options (alot of stuff here but lets simplify it:  you become a middle men for hooking up a landlord and tenant)Flipping houses: if you have PML and HML who are willing to pay for everything but for a newbie will be extremely expensive on your end profit (plus if you need to pay points for the loan)yeah many agents are investor friendly meaning that they will go with you and see houses write up offers etc but when it comes to wholesaling off the MLS what you need to do is the double close.

You can buy great looking laminate at $1-2sqft at Lowes, plus underlayment (definitely install underlayment/vapor barrier, it helps with the water problem and also helps the floor absorb minor leveling imperfections).