Rent out or sell our primary home?

[Tabitha Fox]

I wasn't sure where to put this, so if it's the wrong category, please feel free to move it.

I have sent a letter to the owner of a vacant house in my neighborhood. I'm 99% sure no one lives there. We would be purchasing this house for our primary residence if we can snag it for the right price. (More on that later if it comes to fruition.)

My question is about our current house. I'm debating on renting it out or selling it. It is a 1946 3/1. We have done the major guts updates, full electrical/HVAC/plumbing and some other more minor things. Added a wood stove, ceiling fans, attic drop down door. Added a dishwasher.

It still needs a lot of work, but we've been living here for 1.5 years just fine. Kitchen and bath remodels are top of the list. Thing is, we don't have the funds to shell out for these remodels. And the roof will need to be replaced in the next couple of years according to our home inspector when we bought the house.

I'm wondering if renting it would open us up to too many liabilities or unhappy tenants or something along those lines. It's also on 4.17 acres, mostly wooded though.

The mortgage is $407 (taxes and insurance included). I figure we could get around $650-$700 or so as is. 

Our mortgage balance is $53,000 with a recent appraisal of $72,500. Now, I'm not entirely sure we could get that amount for it. 

Also, I'm pretty sure it won't qualify for a buyer to get an FHA mortgage. It just needs too much. And I know many buyers go that route. It would be a good candidate for a 203K or a USDA rural (if there isn't too much red tape with the condition and whatnot).

Opinions?