Anyone own a rental property?

Any advice here would be really helpful..

I'm 28 and bought my first home when the market was right above it's lowest point about 4 years ago. I like the neighborhood but I don't like the house and there isn't enough room for my Mopar activities. I bought the house for $145k when I was only making $10/hr and I was able to afford it just barely. I have no kids and no debt other than the house. Since I bought the house I finally started my real career and am making over double what I originally made when I bought the place.

I was looking at homes online the other day and found my dream home. The house is 500sq ft bigger than my house, is redone on the inside, has a country style front porch and a huge 4 car garage so my projects can be garaged at all times. Absolutely perfect as far as my realistic dream home goes.

My problem is if I owned both homes and didn't have a renter in my current home, I'd only have about $600 to spare for bills, food and gas. Which just isn't enough to do on my own. On the plus side, my girlfriend would move in with me and take the load off most of the bills. Another problem is I would have to try for an FHA loan because I don't quite have enough for a 20% down payment.

I basically have two choices. Rent my current home or sell it. Investment wise I'm sure renting is the best choice. I could rent the home for at least $400 more than the mortgage/escrow fees. I would also most likely have to get a property management company to deal with it because I know nothing about doing that stuff on my own. Do property management companies really just take care of basically everything for you for a 10% a month fee? Like do they write out the lease contract and all that as well? I wouldn't mind paying the 10% to not have to deal with the headaches. Bad renter horror stories scare me and I absolutely hate dealing with drama. I just don't want to get myself into something I can't handle. The responsibility is kind of scary to me.

My other choice would be to sell the home. Prices look like they have gone up a bit from when I bought it. Homes around me are selling for 15% or so more than what they were at 4 years ago. I looked up a bunch of home value estimates on my home. Most estimate it to be worth between 10-20% more than what I paid for it. A couple estimated it to be worth about 5% less. Obviously those are just estimations and can't be relied on but at least things on looking on the plus side there. If I could sell it for 10% more, I should be able to pretty much break even on the place, right? At that point I could afford my new dream home with ease.

What do you guys think I should do?