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 to yourself, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it? Many questions during difficult times.
Tons of options are open for you but…
… we can help. We at Minnesota Cash Home Buyers love helping good people out like you.
We’re seasoned investors in Minneapolis St Paul real estate, and we’re looking to buy several houses each month in the Minneapolis St Paul Minnesota area. Every month we get calls from people in the twin cities who have inherited a house, cabin, duplex, land, you name it and are looking to sell… so the info below are some tips to help you navigate the process. If you want more personal touch give us a call
I Inherited A House, What To Do Next?
Here are 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 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. your only option may be to sell. That gets me thinking about a lot of questions I would ask to determine the best way to move forward.
2) The investment is only as good as the rental manager.
If dealing with rental 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 with all the things concerning rentals 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. By law, you need to be accessible to your renters in a timely manner. As you can guess, phone calls do come in at 11 pm at night for no heat in January.
Another option is to go for a rent to own contract with a good renter. You might even be a little conflicted now with what to expect when selling your house via rent to own in Minneapolis St Paul
So many options but only what that matters is the one your are comfortable with. Need to be aware of what happens when you inherit a house in Minnesota . We would love to just talk with you about your options to help you work through whats best for you.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements or at least thousands of dollars in delayed maintenance.
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. For example:
- Roofs can be $7,000- $15,000
- New Bathrooms average (moderate priced home) $10,000
- New Kitchens average (same house as above) $25,000 to $35,000
- Exterior house painting $8,000 – $13,000
- Replacement windows $450 – $1200 each
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens/ bathrooms, improving landscaping and overall cleanup, don’t worry. We buy Minneapolis St Paul houses for cash, as-is.
5) If the Twin Cities 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 it out. 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. When inheriting a house research tax consequences in Minneapolis St Paul before its to late. Some planning now goes along ways on April 15th.
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 Inver Grove Heights investment experience can help you win.
Another option is selling is similar to a lease option, but its Contract for Deed with a nice sized down payment. The good news of both of these options is that you are in control of the property and if someone stops making payments you get to keep the sizable down payment and the house. You hate taking the house back but with a down payment in your pocket, it might be worthwhile.
If you do either one of these options, make sure you have a rock-solid contract in place to protect you financially and from any liabilities associated with the property while the others are living in it making payments to you
8) Compare a few scenarios.
We’ll help you determine prices for any property near Inver Grove Heights – 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).