You have found yourself thinking, “I inherited a house, now what do I do with this property?” Should I rent it? Do I want to be a landlord? Should I sell it? How should I sell it? Can I even sell it because it needs repairs? You have several options, let’s explore them so you can make an informed decision during these tough times.
I Inherited A House, What Do I Do Next?
Here are 8 important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage you have to pay it (assuming you want to keep the property). There are some banks that will allow you to assume the existing loan, but you may be forced you to refinance the house into a new loan. If you don’t qualify for a new loan, you may not be able to keep the house as a rental property. If the house did not have a mortgage, you can consider renting it as a rental property.
2) The investment is only as good as the manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management doesn’t sound like your cup of tea, then you can consider hiring a professional to manage the property or you can sell the house. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure, but you just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements and updates prior to selling or renting the property. Consider hiring a professional home inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping, and overall cleanup, don’t worry. We buy Savannah houses for cash, as-is.
5) If the market will grow fast, hang on to the investment.
We can help you analyze the value of your property versus the benefits of renting. If you need the money today or you want to pay off debt, you can sell the property and use that money another way. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our RINCON investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near RINCON – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).
We’re seasoned investors in Savannah real estate, and we’re looking to buy several houses each month in the Savannah Georgia area. Every month we get calls from those who have inherited a house and are looking to sell the house.