Should I refinance and rent or sell and buy a rent ready property

[Mark W Duncan]

So I bought a house for 130k in an b to b+ area in my small town in Arizona and am remodeling. It should at least appraise around 165k (was listed for 167k and had an offer that fell through) once finished. The rent in the area is around 1200 a month for this particular neighborhood. Should I sell and buy a rent ready house or refinance and rent it out?