Inherited a house – First and foremost, we extend our heartfelt condolences for your loss. Dealing with the loss of a loved one and the responsibility of property ownership, especially if you’ve inherited a house, can undoubtedly be an incredibly challenging time. This adds an extra layer of complexity to an already tough situation.
The question on your mind might be, ‘I inherited a house, what should I do with it?’ The considerations may include renting it, selling it, or determining the best selling approach.
While the options may seem overwhelming, we’re here to lend a helping hand.
As seasoned investors in Orlando real estate, we actively seek to purchase several houses each month in the Orlando, FL area. We regularly receive calls from individuals who have inherited a house and are contemplating its sale. The information below offers some valuable tips to assist you in navigating this process with more clarity.
I Inherited A House, What To Do Next?
Consider these important factors to guide you in making the right decision:
1) Make sure the mortgage is paid.
While it may seem obvious, it’s crucial to note that if the person who bequeathed the property had a mortgage (unless it was entirely paid off, which is favorable), you will be responsible for it if you decide to keep the property. Certain banks may allow you to assume the existing loan, while others may require you to refinance into a new loan. If you don’t qualify for a new loan, renting might not be a feasible option for you.
2) The investment is only as good as the manager.
If handling brokers, maintenance, tenants, rent collection, and the intricacies of property management is not the best use of your time, consider hiring a professional or opting for a cash sale now. While some individuals who inherit homes choose to keep the property and rent it for additional income – a solid strategy, no doubt – it’s essential to be ready to navigate the responsibilities of property management, including the potential challenges associated with tenants and property upkeep.
3) Property ownership costs money.
It’s uncommon to come across a building that has been perfectly maintained. Most inherited houses typically require significant improvements.
Think about engaging a professional property inspector who can provide you with a comprehensive assessment of necessary actions within the next five years, along with estimated costs. Unexpected surprises in property maintenance can be very costly.
4) Selling a property for top dollar costs money.
If you prefer to avoid dealing with repairs, kitchen updates, landscaping improvements, and overall cleanup, there’s no need to worry. We purchase Orlando 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 assist you in evaluating the current value of your property compared to the potential long-term benefits of renting. If there’s an opportunity to utilize the equity in your property more effectively in a way that outperforms the real estate market, it’s worth considering. On the other hand, if you don’t have a more compelling use for the funds and the neighborhood’s property values are on the rise, holding onto the property may be a wise choice – real estate can prove to be a great investment when you can accurately interpret market trends.
6) Uncle Sam wants a piece of the action.
Don’t overlook the importance of consulting with tax and legal professionals about your inheritance before making any decisions. There are significant property and income tax consequences that can profoundly impact the overall cost of owning your investment.
7) Consider all your options.
In specific scenarios, we may be able to assist you in structuring a lease-option agreement, enabling you to rent and sell simultaneously – providing the benefits of both scenarios. While these deals can be intricate, our experience in Orlando investments can guide you to success.
8) Compare a few scenarios.
We’ll assist you in determining the prices for any property near Orlando. This includes the potential sale price if you were to sell it today without making any improvements – the highest price the market will bear. Additionally, we can provide insights into the projected value of keeping it as a rental, along with associated costs.
In conclusion, navigating the complexities of inheriting a house can be emotionally challenging, and at Investment Capital Home Buyers, we extend our sincere condolences for your loss. We recognize the added layers of difficulty that come with property ownership in such times. Whether you’re considering selling for cash, exploring rental options, or making strategic improvements, our team is here to assist you.
With our expertise in Orlando real estate investments, we offer a helping hand to guide you through the process. If you’re seeking a hassle-free and efficient solution tailored to your unique needs, contact us at (407) 604-1054 or fill out our online form. Let Investment Capital Home Buyers simplify your journey and provide a solution that aligns with your circumstances.