Landlord - Rent or Sell

New landlord. I've been renting out my townhome and received my new tax bill without the homestead exemption. My monthly profit would go from $720 to $270 and I'm not sure if I should sell and use the proceeds (roughly $80k) to buy another property in the state I currently live or keep it and continue to rent it out. I'm leaning towards keeping as I don't want to lose the 3.5% interest. Advice is greatly appreciate