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 Omaha real estate, and we’re looking to buy several houses each month in the Omaha Nebraska 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) Ensure the mortgage is settled.
While it may seem obvious, it’s crucial to confirm the status of any existing mortgage on the property left to you. If the property has no mortgage, that’s fantastic! Otherwise, you’ll need to address the mortgage payment if you wish to retain ownership. Some banks may allow you to assume the loan, while others may require you to refinance into a new loan. If you don’t meet the criteria for a new loan, renting out the property may not be a viable option.
2) The key to a successful investment is an expert manager.
If you find dealing with brokers, maintenance, tenants, rent collection, and all the intricacies of property management to be a drain on your time, it may be wise to hire a professional or consider selling. Some individuals who inherit homes opt to keep the property and rent it out for additional income. This can be a sound strategy, but it’s crucial to be prepared for the responsibility of managing the property and the challenges that come with tenants and property maintenance.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property 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 Omaha houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
At Kaizen Property Solutions, we understand the importance of making informed decisions when it comes to your property. Our team of experts is here to help you analyze the current value of your property compared to the potential benefits of renting. We believe that if you can find a better use for the equity in your property that yields higher returns than the real estate market, it makes sense to explore those options. However, if you don’t have a better investment opportunity and the neighborhood is experiencing an increase in value, holding onto your property can be a smart choice.
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 Omaha investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Omaha – 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).