First and foremost, we extend our sincerest condolences for your loss. We understand that inheriting a house can be a difficult and emotional experience, and we hope this guide will offer you some support and guidance during this challenging time.
At [company_name], we have nearly 30 years of experience as real estate investors in Coachella Valley, and we specialize in navigating difficult and complicated Real Estate situations.
If you’re thinking of renting or selling your inherited property, we are here to help. From determining the value of your property to deciding on the best method of sale, we are committed to providing you with the support and guidance you need to make informed decisions.
We wrote this guide and gave you some tips to help people just like you find some clarity and ease with their inherited houses.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Don’t let an outstanding mortgage ruin your inheritance!
Although it may seem obvious to many of you, this should be one of the first things you do after inheriting a property. If money is still owed, you are responsible for that now. Talk to the bank and determine what you qualify for. Some banks will allow you to take the loan over, others may require you to refinance into a new loan. If they do and you don’t qualify for the new loan, renting may not be an option for you.
2) Are you ready to maximize your property’s potential?
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 all the hassles that come with tenants and toilets. Managing a rental includes dealing with maintenance, screening tenants, tenant requests, rent collection and a whole slough of nuances and unpredictable situations. If handling that on an ongoing basis isn’t the best use of your time, you can consider hiring a professional property management company or simply sell your house and cash out .
3) Property ownership costs money.
In addition to time and energy, owning a property comes with a set of expenses such as property taxes, maintenance costs, and utility bills that need to be considered. Aside from that, Inherited houses may also require major improvements. Its rare to see a building that’s been perfectly maintained.
Consider hiring a professional property inspector who can provide you with a detailed rundown of what you need to do within the next five years and an estimate of the costs involved. This can help you avoid any unpleasant surprises which can be very expensive.
4) I hear AirBnBs can make a lot of money.
Yes. They certainly can. If you thought the paragraphs above sounded like a lot of work, the constant turnover of guests at a successful STR (Short Term Rental) creates that much more work. That doesn’t even factor in all the work it takes to become a successful STR like marketing costs and efforts, nor does it factor in the strict zoning laws throughout the Coachella Valley.
If none of that bothers you – or maybe you like tough projects and that actually excites you – be warned that the zoning laws and restrictions vary VASTLY between municipalities and may completely prevent you from operating a STR business from your inherited property. Before you go all-in on a STR plan, check with the Coachella Valley government to make sure the neighborhood your inherited property is in allows it.
We, at [company_name] are experts in the nuances of each city and each neighborhood throughout the Coachella Valley so you can also give us a call at (760) 849-8115 and we will help you decide if this is a feasible option for you.
5) Selling a property for top dollar is not cheap.
Maybe the hassle of tenants or running an STR isn’t for you and you want to sell this property for the highest possible price. That may require some investment in repairs or renovations to increase its value. This can be a daunting, risky task for the inexperienced. Its really easy for even the smallest projects to run into snags, delays, or worse. While there is definitely potential for great profit, there are countless stories of projects gone wrong and renovations going massively over budget.
This doesn’t include the expense that occur if your house sits on the market, or the hassles and fees of working with an agent. If none of that sounds like your cup of tea, don’t worry. We buy Coachella Valley houses for cash, as-is.
6) Is holding onto your property even the smartest move?
Over the long term (10-15+ years), property values do tend to go up. On a shorter time frame, however, its not as consistent. Sometimes its better to use the equity in your property in another way that outpaces the performance of the real estate market. We can help you analyze the value of your property today versus the long-term benefits of renting.
If you don’t have anything better to do with the money and your neighborhood is rising in value, it may be best to hang on – real estate can be a great investment if you know how to correctly read the market.
7) Beware: Uncle Sam wants a cut of your inheritance.
You may be thinking, “But wait, didn’t you already mention property taxes?” We did. There are other taxes that may come along with inheriting a house, especially if you plan to use it as a rental. Before taking any action, it’s important to seek advice from tax and legal professionals regarding your inheritance. The ownership of the property could result in significant property and income tax implications that may substantially affect the cost of your investment.
8) Don’t make a costly mistake: Compare your scenarios now and make the best decision for your situation.
We’ll help you determine prices for any property near Palm Desert – 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).