Should I sell my Property in Baltimore City

[David Norfolk]

I have a small 600sqft 1 bed/1bath, 2 story row house with a roof top deck in Federal Hill (21230) area of Baltimore City. I'm really struggling if I should keep it or sell it. I bought it as a personal residence in 2005 then had to rent it when I could not sell it in 2009.  Due to a huge influx of rental units in Baltimore city that I'm now competing with, probably about 2,000 new apartment in my zip code since 2008,  I see no rent appreciation in the future.

Purchase Price 2005 $189,000

Currently Owe $122,000

Comps $160,000

Mortgage + Tax - $935 per month

Rent $1,300

It has just become a hassle to rent and keep tenants happy. I was thinking of getting a property manager, but does it make sense to keep a house for only $200 cashflow a month? I could take the $20K and invest in a REIT like PEI (div 8%) and get $133. A link as it always helps to see the house.

Small Row House 1605

Any Thoughts are appreciated.

[Matt Schelberg]

This is at best a break-even rental property.  Go to the BiggerPockets rental property calculator.