We extend our sincerest condolences for your loss. We recognize that this can be an exceptionally challenging period for several reasons, and managing property ownership can be particularly difficult, even under the best of circumstances.
You may be pondering, “What should I do with this inherited property? Should I consider renting it out? Or perhaps selling it is a better option? And if so, what would be the most suitable approach for selling it?”
Tons of options open for you, but…
… we can help.
As experienced real estate investors in the New Orleans area, we are actively seeking to purchase multiple properties each month throughout Louisiana. It’s not uncommon for us to receive inquiries from individuals who have inherited a property and are interested in selling it. As a result, we have compiled a few helpful tips below to assist you in navigating this process.
I Inherited A House, What To Do Next?
If you’ve inherited a property, you may be wondering what your next steps should be. There are several factors to consider before making a decision, such as the current condition of the property, your financial goals and capabilities, and the state of the real estate market. It’s important to assess the property’s physical condition to determine if any repairs or renovations are necessary to increase its value or make it suitable for sale or rent. Additionally, you’ll need to consider your financial situation and determine whether selling or renting the property aligns with your long-term financial goals. The state of the local real estate market is also a crucial factor to consider, as it can impact the property’s value and the demand for rental properties. Ultimately, weighing all of these factors and seeking guidance from a qualified professional can help you make an informed decision that aligns with your unique circumstances and objectives.
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume 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.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. 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.
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 New Orleans 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 today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. 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 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 Gretna investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Gretna – 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).