Now that you've inherited a house, here are some important considerations to help you make the right next step.
#1: Make sure the mortgage is paid If the person left behind a home, then they most likely had a mortgage which you will have to keep paying (assuming you want to keep the property). Some banks let you assume the loan. Others may force you to refinance. In the case that you don’t qualify for a new loan, renting the inherited property out may not be an option.
#2: Make sure you can manage the investment Are you ready to work with brokers, tenants and all the people involved in property management? If that doesn't sound like fun (or the best use of your time), you might want to hire a professional to help you manage it, or you may have to consider just cashing out. Some people who inherit homes decide to keep the house and rent it for extra income. That’s an excellent strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
#3: Make sure you understand that property ownership is expensive Most inherited houses need significant improvements. Hire 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 can be costly down the road!
#4: Know that selling a property for more money - costs money If you are unwilling to make repairs, updates and improvements- don’t worry. Many professional local home buyers in Dallas will buy your house for cash, as-is.
#5: Be aware of taxes Weigh in on 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.
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