If it's small enough you can let it drag you down in a bad time, then it might be the way you try this out.
I've known some people who intentionally buy a lesser first home for the express purpose of making it a rental. Was that your original intention, or did you buy it originally thinking it was a great house?
Some questions:
1. Could you buy a rental if you decided to sell this house, or is this your way in?
2. If you could buy another place, would you keep this one? If no, then get a different one. If no, but you can't get another place, then maybe this is a wealth building opportunity to get you to the next level.
3. Doesn't this list look better with 3 questions?