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 in Florida, what should I with it.” Should I rent it? Should I sell it? How should I sell it?
There are lot of options available to you, but they can be overwhelming. We can help you understand your options and decide which option works best for you and your situation.
We are experienced investors in Florida real estate, and we’re looking to buy several houses each month in Central Florida and the surrounding areas. Every month we get calls from those who have inherited a house and are looking to sell the house. The information below are some tips to help you navigate the process.
I Inherited A House In Florida, 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 had a mortgage on it, you must continue making the payments . If you stop making the payments, you could lose the home and hurt your credit. Some banks will allow you to assume responsibility for 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
Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. Hiring a local professional to manage the property for you is an option but make sure you thoroughly understand how they charge for their services.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of owning a rental property, isn’t the best use of your time, you may want to consider selling the house.
Contact us if you have additional questions: 407-335-8556 or www.GoodBuyHouse.com .
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. Feel free to contact us if you need help locating a property inspector.
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 Central 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 and discuss options for the property today. One option is to use the equity in your property to investment in other opportunities if you think they are better than real estate. Just be careful not to get over leveraged. Another option to consider is holding the property if you think home values will increase. 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
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 investment experience can help you win.
8) Compare a few scenarios
We’ll help you determine prices for any property – 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).