Should I keep or Sell

[Malik Edwards]

Hello all, I purchased two houses via HM loans. One house was a gut reno while the other, I remodeled, the kitchen and bathrooms as will as added central air and replaced the roof. The recent cuts to section8 seems to have my city nervous so they lowered the amount for one of my houses after everything passed inspection. For perspective, I was looking to get $1800 a month (according to their website) but instead, they offered $1575. This restricts cashflow to about maybe $100 a month. This is for the gut reno house. For context, the neighborhood isn't the greatest. My second house is in a good neighborhood and I can see the value going up over the years but I believe it's going to have the same cashflow problem as well, around the $100 mark since section8 is becoming more reserved. I've lucked out over the years and typically get good cashflow from my properties but for these, they would be low. My question is this, should I take the low cash flow and wait out the market while hoping nothing breaks and bank on the values going up or should I cut my losses now and just sell. The profit wont be huge for either (may 10-20k each). lastly, if I keep both, I can pull out 35k from the house in the worse neighborhood and about 10 from the one in the better neighbor hood in a refinance. I have ideas flowing but would definitely love to hear other peoples' perspective.