Rent or Sell Paid off Home

[Justin Boddie]

We have a house that's about 40 years old in the north DFW suburbs, which is a really strong housing market right now.  The house has been paid off for several years, and we're trying to determine what's the best course of action with it now.  It's not our primary residence, we're wanting to do something with it. 

It's in good condition, 3 BR, 2 BA, roughly 2,000 sq ft.  Bought in 1993 for about $125,000.

My initial estimates are that it could be sold for about $300,000.  Or possibly about $2000 rent a month. Both the prices for home buying and home renting have gone up over the past few years.

This would be our first rental property, but I don't having to do the landlord duties.  

Basically, I didn't know if there was a general rule of thumb or if anyone had a strong opinion on the best course of action when the house has been paid off.  There's no mortgage payments that the income would be offsetting, the income would be put into savings.  

Any thoughts would be great, feel free to let me know if I'm not giving enough info.  Or even if I'm asking a dumb question, maybe the answer's pretty obvious.  

Thanks!