Inheriting a property can be a tough task to handle when you are going through an unfortunate time. There are many things probably running through your mind, we know most people are thinking “I inherited a house, what do I do with this?” Should I move into it? Sell it? Whats the best option for me?
There are a list of things that you can do with an inherited house in Little Rock.
We’re local investors in Little Rock real estate, and our goal is to buy houses in the Little Rock Arkansas area. We have worked with many people who have inherited homes and we have been able to offer them cash for those houses.
I Inherited A House, What To Do Next?
Doing the right thing for yourself and your family is important. Here are a few things to consider.
1) Is there a mortgage on the property?
As someone who has inherited a property you will be responsible to pay the mortgage if there is still one on the home. If the home is free and clear, disregard this step! It depends on the bank, but you may be able to take over the mortgage while others may require you to refinance into a new loan. If you don’t meet the criteria for a new mortgage, keeping the property may not be an option for you.
2) Managing the property – something to think about.
If you do not want to deal with tenants, maintenance issues, complaints, and other property management responsibilities it may be a good idea to hire a property manager. If you don’t want to use a property manager or if you can’t afford one, you could consider selling the property. Turning an inherited home into a rental property is a good strategy, but you must be ready for what comes with that responsibility.
3) Owning real estate cost money.
Unless the property is brand new or is in pristine condition, consider hiring an inspector to check out the house. Any repairs and warning signs will be important to become aware of so you are not walking into a money pit a few years down the line.
4) Selling a property for top dollar costs money.
If you can’t afford to make repairs to the interior or exterior including paint, flooring, kitchen, bathrooms, etc… We buy Little Rock houses for cash, as-is.
5) If your property is in an appreciating market – consider holding it.
We can help you analyze the market that your property is in, the value of the home, and give you projections of the appreciation down the line. If you can rent out the home and use the equity as leverage, that is something to consider. 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 analyze the market that you are in.
6) Uncle Sam always gets his.
When you inherit a property please visit a tax professional and understand what type of tax payments will be required of you. Most people don’t realize the property and income taxes associated with owning property. Be sure you understand that for yourself.
7) Creative scenarios.
In very specific scenarios we may be able to offer creative financing and do a lease-option agreement that allows you to rent and sell at the same time. This option can sound complicated but our experience in Little Rock real estate will make everything run smoothly.
8) Weigh your options.
We’ll help you determine prices for any property near San Diego – 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).