Ed: Hey everybody, it’s Ed here at West Coast Property Group again, and today’s video blog is, I Inherited a House, What To Do. Should I rent it, should I sell it, in Eugene.
First of all, it’s a very challenging time for many reasons. Dealing with property ownership, it’s tough even under the best circumstances, let alone something that you inherited. So if you’re thinking, “I inherited house in Eugene and what should I do with the house? Rent it? Sell it? How should I sell it?” What do you do? We got tons of options here, and rest assured we can definitely help. Lets jump in with what to do with an inherited house.
We are seasoned real estate investors here in Eugene, and we’re always looking to buy a couple houses in the Eugene, Oregon area each month. At least once or twice a month we get calls from people that have inherited a property in the Eugene area, and we got a few tips here for you. We got about eight things that I want to talk about.
So you inherited your house, what are you going to do next? So first thing, you want to make sure the mortgage is paid. It may sound completely obvious, but if the person who left you the property had a mortgage, you have to pay it, assuming that you want to keep the property. You definitely don’t want to foreclose on a property, there’s possibly lots of equity that’s in this property and you want to capture that.
Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. So if you don’t qualify for a new loan, you may be forced to rent. That’s another option.
The second thing you want to talk about is the investment is only good as the manager. If you’re dealing with brokers, maintenance, tenants, rent collection, and all those hassles of property management, it may not be the best use of your time. You could hire a professional to help you cash out now, or you can manage the property. Some people who inherit a house, they just decide to keep the house and rent it for extra income, and that’s definitely a strategy. There are issues that come up with that as well, tenants and toilets and da da da da da, all that stuff that we talk about.
The third thing, property ownership, it definitely costs money. It’s rare to see a building that’s been perfectly maintained, and most inherited properties, they need lots of improvements, they need upgrades. Mom and dad, gramma and grampa, they probably lived there for many years and did not do many upgrades. So consider hiring a professional property inspector to give you a detailed rundown of what needs to be done, maintenance, catch ups, that kind of stuff. You may be surprised at the cost of this.
The fourth thing here is selling a property for top dollar, it costs money. Keep in mind all these upgrades you’re going to have to do to get the property to the fair market value. Just because your neighbor’s house sold for X amount doesn’t mean that yours is going to sell for X amount in a different condition. So if you don’t want to deal with making repairs, updating the kitchens and landscaping and all that stuff, don’t worry. We buy houses for cash, as-is.
Number five. I think we’re at number five. The market will continue to grow faster than your other options. You may want to hang on the investment. So we can definitely help you analyze your property for today versus long-term benefits of renting. If you can use the equity in your property in other ways, and if that outpaces the performance of the market, then you should probably sell the house. If you don’t have anything better to do with the money, and if that neighborhood is rising in value, then hang on to it. You can capitalize on the resale value of that property later on. As we all know, real estate can be a great investment, just depends on what your intentions are.
Number six. Taxes. So Uncle Sam always wants a piece of the pie there. So don’t forget to discuss this inheritance tax with your legal professional. There are major property and income-tax consequences that could possibly drastically impact the cost of owning that property for you in the future.
Number seven, you want to consider all your options with your inherited house in Eugene. So 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. So these kind of deals can be complicated, but in our experience in the Eugene investment area, I can definitely sit down and help you with that. I absolutely love lease options. There’s a number of reasons, we can get into this in another video blog, but we can offer top dollar for your property with a lease option. The only catch is you’re going to have to wait down the road to capitalize on the final payoff.
Number eight. Compare all these different options and scenarios for you. We can sit down with you and help you determine the prices of your inherited house in Eugene, if you want to sell your inherited house today without doing any work, will it get the highest price that the market will bear for you, and see what it will all take for you to keep it as a rental property.
So if you’d like to learn more just give us a call today at 541-780-2424, or just log on to the website at www.westcoastpropertygroup.com. I’d love to talk with you and help you come up with a strategy that is best for your needs for your inherited property in Eugene, Oregon. Thanks.