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Sell or Rent? Jersey City townhome

I'm currently in the process of deciding whether to sell my home (approximately 500k) with a net of 470k after commission, sales tax, law fees, etc OR rent the property for roughly 2k per month. It is a townhouse that is not renovated, built in the 1980s, and is due for some repairs (nothing necessarily major). I have not been a landlord so this would be a first. It is my parents' property and we will move in somewhere else.

The question I had, would this be a good ROI.

Rent - 24k/annually

Taxes - 6k/annually

Home Insurance - 1.2k/annually

= 16.8k/annually.

This number is very raw considering there are no home maintenance repairs factored in plus we don't know how long it will take to get a renter. Furthermore, most properties in this area were rented out for about $2400-2500/month but with the pandemic prices have gone down as everyone is moving away from the city. 16.8k/500k = roughly 3.36% ROI. Is this worth it? Do I hold onto this property because of its location (close to downtown JC) and take the crappy ROI until things become more in demand of renters in urban cities.

submitted by /u/Man_Child716
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/n0tohw/sell_or_rent_jersey_city_townhome/
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