I don’t understand is how the price went up 10% during the pandemic, we can assume its demand and supply, but I felt its more of buyer’s willingness in a race (No rationale).

If you do decide to hold on to it and rent it, like @Donald E Appleberry mentioned, finding a tenant in the current market condition will not be a challenge, as there's a high demand for housing and lower supply from what I'm seeing.

So I would say around 26-30% return a year with principle.As an FYI: All properties in this city have appreciated 15% to 20% since Covid started and rent for a two bedroom experienced the highest increase in North America according to many reports due to low supply and vacancy rate sits at 0.9%The appraisal came in at $395,000 when I initially had 390K offered on it and went down after due to no electric setup in the garage.The area itself is close to downtown and major attractions within just 10 minutes.. but it isn't one that will experience development as it is surrounded by mostly empty industrial zoned land for years and years and mostly older homes that are ready to be renovated and bought for cheap.My question to all is..

To me it's all supply and demand, I'm not sure I see the supply for rentals getting any lower if home prices continue to climb...

That data alongside historically low interest rates, outdated land use code and lack of supply explains the appreciation in the metro. 

October and YTD MLS Statistics  SUPPLY Inventory is down 50 % from 2019 that is DOWN @ 3,500 Units.STOP ---------------- and let that sink in. 

The pueblo market shows an avg appreciation of 14%, the stigma around Pueblo is a great advantage the keep the market low and plenty of inventory tho there is only .8 for a months supply.

Total supply of homes for sale is important too.As an agent I also like looking at all the data put out by the National Association of Realtors.

She said the supply is low and we have done renovations....

The play may be to just do net metering back to the power co and not supply the house.