I would at least consider running the numbers on renting it.
How hefty could the property tax be ? 4K ?
If that amount of money causes a problem for you then you are not a good candidate to be a landlord.
However, depending on your local market, it might be that only the best condition homes will sell. There are likely few buyers for POS estate sales. If there is no market for selling it, I would consider renting it out.
If you get 1200 per month, that might equate to 900 or so after expenses. You would need about 215K in cash at 5% to pay you that much. If you cut the price to much below 250K you probably would be about break-even in this comparison. Plus, depending on your tax circumstances you might get an additional take break for paper losses due to depreciation. Run the numbers carefully, then make a decision.