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Help! Don’t Know Whether to Sell or Rent New Jersey House

Good day. I’m looking for some advice and insight. I’m a first time owner of a home that is paid off in Central New Jersey: split-level 4 bdrm and 2 baths. Kitchen, dinning room, living room, 1 full bath and 3 bdrms all upstairs. Family room, 1 large bdrm, 1 full bath, utility room, laundry room and attached garage downstairs. This is a property that I inherited and once the property was legally transferred into my name I decided to redo the kitchen and 2 baths.

At first I was going to flip it (redo the kitchen, 2 baths, paint job, change outdated lights and closet doors) to sell at a premium especially since homes in New Jersey have been selling way over asking due to market demand and low inventory. This past Spring prior to starting my renovation project, I spoke with a realtor who sold a house in my neighborhood that had been abandoned for years (I’m assuming the owners passed) and was flipped by investors and sold for around $450k. This was in Summer 2022. I told the realtor about my reno plans and what the house would likely be worth afterwards. The realtor said that I could rent it out for around $3k-$3,250, lowest $2,750 (but I believe anything 2k given my renos, mortgage rates and demand is too low). I estimate my house will be worth anywhere from $500k to $575k, possibly hovering around $600k once the total redo is finished. I plan on confirming this with the realtor and will likely get a second opinion from another realtor that my family knows.

My question is: should I rent or sell? Just to add, I’m likely moving abroad this year so if I were to become a landlord I would not be in the area and would definitely need to hire a property management company. I’ve worked in property management before for foreign investors so this time I will be in the driver’s seat.

If I decided to rent, the passive income would definitely be a nice cushion once I settle abroad. A potential con could be the time it would take for me to find a suitable renter, in addition to the fact that although my area is in a great, quiet location to access places like NYC, Philly, Jersey Shore, it’s not really a heavy renter’s market. Most of the homes I believe are owner occupied, but I believe this may be changing given the rising home prices and mortgage rates.

The other part of me wants to sell high, take my cash and leave. Just weighing some options and any advice would be appreciated! Thanks!

submitted by /u/m00bs4u
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source https://www.reddit.com/r/RealEstate/comments/15cu1ir/help_dont_know_whether_to_sell_or_rent_new_jersey/
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