I Inherited a House, What To Do? – Should I Rent or Sell in Phoenix?

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, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it?  How should I sell it?

Tons of options open for you, but…

… we can help.

We’re seasoned investors in Phoenix real estate, and we’re looking to buy several houses each month in the Phoenix AZ area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info 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.

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.

Inheriting a property introduces the choice of managing it personally or seeking professional assistance. While renting out the property for additional income can be a strategic move, the associated responsibilities, such as dealing with brokers, maintenance, tenants, and rent collection, may not align with everyone’s preferences or available time. Property management demands a significant time commitment and expertise in handling the intricacies of tenant relations. Some individuals opt to hire professional property management services to navigate these challenges, allowing them to enjoy rental income without the day-to-day involvement. Alternatively, cashing out by selling the property might be a preferred option for those who find the complexities of property management overwhelming or who seek a more straightforward financial strategy. Deciding whether to keep, rent, or sell should align with long-term financial goals, market conditions, and individual capacity for property ownership, with professional guidance offering valuable insights in making well-informed decisions.

3) Property ownership costs money.

Inherited properties often require substantial renovations as perfectly maintained buildings are a rarity. It is advisable to enlist the services of a professional property inspector to conduct a comprehensive assessment, outlining necessary improvements and estimating associated costs over the next five years. This proactive approach helps in avoiding costly surprises, as unforeseen issues in property maintenance can be financially burdensome. By gaining a clear understanding of the required renovations and their anticipated expenses, property owners can make informed decisions about the best course of action, whether it involves budgeting for improvements, negotiating repairs, or factoring renovation costs into the property’s overall financial planning.

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 Phoenix 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 Tucson investment experience can help you win.

8) Compare a few scenarios.

We’ll help you determine prices for any property near Tucson – 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).

Just call us today at (480) 389-6484 or contact us now for more information
on how we can make you a fair cash offer on your inherited house today!