This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re probably wondering, “I inherited a house, what should I do with it?” Should I rent it out? Should I sell it? How should I go about selling it?
There are numerous options available to you, but…
… we are here to help.
As experienced real estate investors in KY, we have a strong interest in purchasing multiple properties each month in the area. We frequently receive inquiries from individuals who have inherited a house and are seeking to sell it. To assist you in navigating this process, we have compiled some helpful tips and advice below.
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.
When acquiring a property from someone else, it’s important to consider the existing mortgage. If the property has no mortgage, that’s fantastic! However, if there is an existing mortgage, you will be responsible for paying it if you wish to keep the property. Depending on the bank, you may have the option to assume the loan or be required to refinance into a new loan. If you are unable to qualify for a new loan, renting out the property may not be a feasible option for you.
2) The investment is only as good as the manager.
If you find yourself overwhelmed with the responsibilities of property management – dealing with brokers, maintenance, tenants, and rent collection – it may be time to consider hiring a professional. Alternatively, you may choose to cash out and sell your property. Inheriting a home can present an opportunity to generate extra income by renting it out. However, it’s essential to be aware of the challenges that come with managing a rental property, such as dealing with tenants and handling maintenance issues. If you’re not equipped to handle these tasks, seeking professional assistance can ensure a smoother and more profitable experience.
3) Property ownership costs money.
When it comes to real estate, finding a perfectly maintained building is a rare sight. Many inherited houses require significant improvements. To get a clear understanding of what needs to be done in the next five years, it is advisable to hire a professional property inspector. They can provide you with a detailed report on necessary repairs and estimated costs. Remember, unexpected surprises can be extremely costly.
4) Selling a property for top dollar costs money.
If you’re tired of the hassle of repairing, updating, and cleaning up your property, there’s no need to worry. At We Buy 502, we specialize in buying houses in KY for cash, and we buy them as-is, no renovations needed. We buy KY houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
At We Buy 502, we specialize in helping property owners like you make informed decisions about their real estate investments. Our team can assist you in analyzing the current value of your property compared to the potential benefits of renting it out. We understand that utilizing the equity in your property in another way may yield higher returns than the real estate market. If this is the case, we can provide guidance on alternative investment opportunities.
On the other hand, if you don’t have any better options for your money and the value of your neighborhood is consistently increasing, holding onto your property can be a wise investment strategy. Real estate has the potential to generate substantial returns if you have the ability to accurately interpret market trends.
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.
At We Buy 502, we understand that in certain situations, you may need assistance in structuring a lease-option agreement. This unique arrangement allows you to rent a property while having the option to sell it at the same time, giving you the best of both worlds. We specialize in navigating these complex deals, drawing from our extensive investment experience in KY. Let us help you succeed.
8) Compare a few scenarios.
At We Buy 502, we are experts in determining the true value of any property in KY. Whether you are looking to sell your property as is or keep it as a rental, we can provide you with accurate pricing information. We will assess the highest price the market will bear for your property if you were to sell it today without making any improvements. Additionally, we will also calculate the projected value of keeping it as a rental, taking into consideration all associated costs.
We buy houses as is and for cash across Kentucky and Indiana. Locations including Louisville Kentucky, Frankfort Kentucky, Elizabethtown Kentucky, Owensboro Kentucky, Bowling Green Kentucky, Covington Kentucky, Lexington Kentucky, Paducah Kentucky, Floyds Knobs Indiana, Sellersburg Indiana, Charlestown Indiana, Jeffersonville Indiana.