First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Florida real estate, and we’re looking to buy several houses each month in the Florida FL area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few 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 (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.
2) The investment is only as good as the manager.
When faced with the decision of what to do with an inherited house, it is important to consider whether dealing with the responsibilities of property management, including brokers, maintenance, tenants, and rent collection, aligns with your priorities and available time. If managing these aspects isn’t the best use of your time or if you prefer to avoid the potential hassles, it may be wise to hire a professional to handle the property for you or explore the option of selling the house. While keeping the house and renting it out can provide an additional income stream, it requires being prepared for the challenges and complexities that come with being a landlord. Managing tenants, maintenance, and other property-related issues can be demanding. Ultimately, the decision hinges on your personal circumstances and preferences, and seeking professional advice can help guide you towards the best course of action that aligns with your goals and reduces potential stress.
3) Property ownership costs money.
It is uncommon to come across an inherited house that has been impeccably maintained, as most properties require significant improvements. To assess the condition of the house thoroughly, it is advisable to engage the services of a professional property inspector. They can provide a detailed evaluation, outlining the necessary repairs or renovations that will likely be required within the next five years and estimate associated costs. Being aware of the potential issues and having a clear understanding of the expected expenses can prevent unexpected surprises that can be financially burdensome. By proactively identifying and addressing these needs, you can make informed decisions about the property and plan for necessary improvements in a cost-effective manner.
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 Florida houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. 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.
Before making any decisions regarding your inherited property, it is crucial to consult with tax and legal professionals to thoroughly understand the potential implications. Inheritances often come with significant property and income tax consequences that can substantially affect the cost of owning and managing your investment. Engaging with professionals in these fields will allow you to gain insights into tax laws, regulations, and any potential deductions or exemptions that may apply to your specific situation. By seeking expert advice, you can make informed decisions and develop a comprehensive financial plan that takes into account the tax implications associated with your inherited property. This proactive approach will help you navigate potential tax challenges effectively and ensure compliance with relevant legal requirements.
7) Consider all your options.
In specific scenarios, we may offer assistance in structuring a lease-option agreement that enables you to simultaneously rent and sell the property, providing you with the advantages of both options. This unique arrangement allows you to generate rental income while also positioning the property for potential sale in the future. Lease-option agreements can be complex, requiring careful consideration of various factors. However, our experience in the Fort Lauderdale investment market equips us with the expertise to guide you towards a successful outcome. By leveraging our knowledge and understanding of the local real estate landscape, we can help you navigate the intricacies of lease-option deals, increasing your chances of achieving your desired objectives.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Fort Lauderdale – 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).