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

To begin, we’re so sorry for your loss. This can be a very difficult time for various reasons, and dealing with property ownership right now specifically isn’t easy.

You may be thinking, “I inherited a house so what do I do with it?” Should I rent it? Should I sell it?  How should I sell it?

You have options but if you’re hitting any roadblocks, we can help.

We’ve been investing in Los Angeles real estate for years, and we’re looking to buy several houses each month in the Los Angeles California area. We get calls every month from those who have inherited a house and are looking to sell the house… so we’ve put together the info below to help you take actionable steps in navigating the process.

So I’ve Inherited A House – What To Do Next?

Here’s a few key things to consider 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. But it’s critical that you continue making payments and not getting into a position of default.

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 or hire a professional that can help you manage the property. But even with a property manager, it’s important you choose the right one. Many property managers just don’t take the same care as an owner so instead of recommending a practical cost-saving solution for a repair, they end up using one of their preferred vendors and that can end up costing you a lot of money in the long run.

3) Property ownership costs money.

It’s rare to see a house that’s been perfectly maintained. Most inherited houses need major repairs or 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. Unfortunately, many inspectors will only provide the inspection report so it will be up to you to contact an electrician, plumber or other professional to actually give you a price. 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 Los Angeles houses for cash, as-is. We purchase distressed homes, renovate them, and sell them to buyers looking for their turnkey dream home.

5) If the market will continue to grow faster than your other options, hang on to the investment.

Deciding on whether to rent or sell will need some analysis and we’re happy to do that for you. If you can use the equity in your property in another investment that yields has a better return than 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 his cut.

Before taking any action, don’t forget to consult with you tax and legal professionals about your inheritance.  There are major property and income tax consequences that will dramatically impact the cost of owning your investment. This is a key step that you absolutely should not skip out on.

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 somewhat complex, but our Yorba Linda investment experience can help you create a positive outcome.

8) Compare a few scenarios.

We’ll help you determine prices for any property near Yorba Linda – if you sold it today as-is, the highest price the market will bear (assuming you spend money fixing it up), and the projected value of keeping it as a rental (along with the costs).

Just call us today at (562) 231-7117 or contact us now for more information
on how we can make you a fair cash offer on your inherited house today!

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