Before we get into this post, let us start by saying we’re so sorry for your loss. This can be a very challenging time for many reasons, so we understand that dealing with a property is just another thing on a long list of things to do.
If you inherited a house in Ventura County, you may be thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
There’s actually several options for you in these situations.
We’re real estate investors in Ventura County, and we’re looking to buy several houses each year in the local area. On top of that, we have actually gone through this situation ourselves with some of our own family members. So that being said, 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) Make sure the mortgage is paid.
One of the first things you should do is figure out the status of the mortgage. If the house is paid off and has no mortgage, that is great. But if the person who left you the property had a mortgage, you will have to pay it (assuming you want to keep the property). Some banks will allow you to assume the current loan, while others may force you to refinance into a new loan. If you have to refinance into a new loan and you don’t qualify for one, renting out the property may not be an option for you.
2) Consider if you want to be a landlord or not.
Some people who inherit homes decide to keep the house and rent it out for extra income. That is a great strategy, but it often times is not as easy as it sounds. Dealing with tenants, rent collection, and taking care of maintenance issues are just some of the aspects that you will have to deal with. And if you get a nightmare tenant (like the ones you hear horror stories about), you will quickly see how owning a rental property may not be all it’s cracked up to be. Hiring a property management company can be a good way to alleviate some of this, but you then have to make sure the company you choose is reputable.
3) Owning a rental property costs money.
Depending on the age of the house you inherited, it could need major repairs and/or updating. You might want to consider hiring a professional property inspector to give you a detailed rundown on any issues with the home. Repairs can easily add up and may cost you more than you expect.
Also, don’t forget about property taxes….
4) Selling a property for top dollar costs money.
As stated above, making a lot of repairs and/or upgrades can cost a lot of money. If you don’t want to deal with any of that, or don’t have the money to do the repairs, we can help. We buy Ventura County houses for cash, as-is.
5) Consider different investment vehicles
We can help you analyze the value of your property today versus the long-term benefits of renting it out. If you can use the equity in your property to invest in another vehicle that outpaces the performance of the real estate market, you should. Obviously this takes time and energy to research, so some people just don’t want to deal with that. If that is the case, collecting some type of return is better than just letting money from the sale of a house sit in the bank.
6) Uncle Sam wants a piece of the action.
Whether you decide to keep the house and rent it out, or sell it, there will be some sort of tax implications. We highly recommend discussing your options with a tax professional before you make any type of decision. Taxes can have a dramatic effect on your decision, especially with the high home prices of the Ventura County market.
7) Consider all your options.
There are other options than just renting or selling the property. We can also buy your house on terms, such as lease option, seller financing, subject-to, etc. If you are not familiar with these concepts, basically they allow you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but we will gladly discuss them with you so that you can have a better understanding of how they work.
8) Compare a few scenarios.
We can help you determine the benefits of a few scenarios, whether that’s selling directly to us, listing the property with a real estate agent, or keeping it as a rental. If you do decide to list it on the open market, we have an in-house realtor who will gladly help you with that.