Inherited a house? First and foremost, please accept our deepest condolences for your loss. This is undoubtedly a difficult time emotionally, and having to make decisions about inherited property only adds to that burden.
You’re probably wondering, “I inherited a house, what should I do with it?” Should you keep it as a rental? Sell it quickly? And if selling makes sense, what’s the best approach for your situation?
While you have many options to consider…
…Electrum Properties is here to provide solutions.
As experienced investors in Lubbock real estate, we’re actively purchasing multiple properties each month throughout Lubbock Texas. We regularly work with individuals who’ve inherited houses and need straightforward, hassle-free solutions – helping both homeowners and communities with fair, win-win offers.
I Inherited A House, What To Do Next?
Consider these key factors to help guide your decision-making process:
1) Make sure the mortgage is paid.
This may seem obvious, but if there’s an existing mortgage on the property (unless it was fully paid off, which is ideal!), you’ll need to address it. Some lenders allow mortgage assumption, while others require refinancing into a new loan. If qualifying for new financing is challenging, renting the property might not be feasible for your situation.
2) The investment is only as good as the manager.
If navigating property management responsibilities like dealing with agents, maintenance issues, tenant relations, and rent collection doesn’t align with your strengths or available time, consider hiring professional help or selling for cash now. While keeping the house as a rental can provide steady income, you should be prepared for the realities of property management and the inevitable challenges of tenants and maintenance.
3) Property ownership costs money.
It’s uncommon to inherit a property in perfect condition. Most inherited houses require significant updates or repairs.
We recommend hiring a qualified home inspector to provide a comprehensive assessment of necessary repairs over the next five years, along with cost estimates. Unexpected property issues can quickly become very expensive burdens.
4) Selling a property for top dollar costs money.
If you prefer to avoid the hassle and expense of making repairs, updating kitchens, enhancing curb appeal, and handling general property cleanup, there’s a simpler solution. We buy Lubbock houses for cash in any condition, helping you get your freedom back with a fair, no-obligation offer.
5) If the market will continue to grow faster than your other options, hang on to the investment.
At Electrum Properties, we can help analyze your property’s current value versus the potential long-term benefits of renting. If you have better investment opportunities that outperform the real estate market, utilizing your property’s equity elsewhere might make sense. However, if you don’t have more promising investment alternatives and the neighborhood is appreciating, holding onto the property could be advantageous – real estate often proves to be an excellent investment when you understand market trends.
6) Uncle Sam wants a piece of the action.
Before making any decisions, consult with qualified tax and legal professionals about your inheritance. The property and income tax implications can significantly impact the true cost of ownership and your overall financial picture.
7) Consider all your options.
In certain scenarios, we can help structure creative solutions like lease-option agreements that allow you to rent and sell simultaneously – giving you the advantages of both approaches. While these arrangements can be complex, our extensive Lubbock investment experience enables us to create win-win solutions for property owners facing challenging circumstances.
8) Compare a few scenarios.
We’ll provide you with a comprehensive analysis for any property near Lubbock – including the as-is cash value today, the potential maximum market value with improvements, and projected rental returns (alongside associated costs and responsibilities).