First and foremost, we want to express our sincere condolences for your loss. Dealing with the passing of a loved one is incredibly difficult, and managing property matters on top of everything else can make the process even more overwhelming.
If you’ve inherited a house in Little Rock, Arkansas, you might be asking, “What do I do with this property?” Should you rent it out? Should you sell it? How do you go about selling it?
The good news is, there are options for you—and we’re here to help. As experienced investors in Little Rock real estate, we purchase multiple homes each month and are happy to assist individuals like you who have inherited property and need guidance on what to do next.
I Inherited a House, What to Do Next?
Here are a few key considerations to help you decide whether you should rent or sell the house:
1) Make Sure the Mortgage is Paid
If the person who left you the property had a mortgage on the house, it’s important to address that as soon as possible. If the house is not paid off, you will be responsible for continuing the mortgage payments. Depending on the lender, you may have the option to assume the mortgage, or you might be required to refinance the loan into your name. If refinancing is not an option, or if you don’t want to keep up with the payments, renting out the property may not be a viable option either.
2) The Investment is Only as Good as the Manager
If managing the property, dealing with brokers, maintaining the property, collecting rent, and managing tenants doesn’t appeal to you, it might be time to consider selling the property. Renting can be an excellent strategy for generating passive income, but it does come with a fair amount of responsibility. If property management isn’t a good fit for you, selling the house may be a better option.
3) Property Ownership Costs Money
Very few inherited homes are in perfect condition, so it’s important to factor in the cost of repairs and maintenance when deciding whether to keep or sell the property. You may need to make significant improvements to the property, from updating the kitchen and bathrooms to fixing the roof or replacing outdated systems like plumbing and electrical. Hiring a professional property inspector to assess the house and provide a detailed report on potential repairs will give you a better understanding of what you’re up against.
4) Selling a Property for Top Dollar Costs Money
If you don’t want to deal with repairs, cleaning, or improving the house before putting it on the market, don’t worry. We buy houses in Little Rock as-is for cash. This means you can sell the property quickly and avoid the time, stress, and financial burden of doing repairs or upgrades to increase its market value.
5) If the Market Will Continue to Grow, Hang On to the Investment
If Little Rock’s real estate market is booming, and you can afford to keep the property, you may want to consider holding onto the house as a long-term investment. As home values rise, your equity in the property will grow. However, if you can use that equity to invest in something else that will yield a better return, it might make sense to sell. We can help you analyze the current market conditions and the potential return on investment for keeping or selling your inherited home.
6) Uncle Sam Wants a Piece of the Action
Before making any decisions, it’s crucial to consult with a tax professional or estate planner. Inheriting a property can have tax implications, including property taxes and potential capital gains tax if you sell the home. It’s important to understand how these taxes will affect your bottom line and to plan accordingly.
7) Consider All Your Options
In some cases, we may be able to help you structure a lease-option agreement, allowing you to rent out the property while still maintaining the ability to sell it later. These types of deals can be complicated, but our extensive experience in Little Rock real estate can guide you toward the best solution for your situation.
8) Compare a Few Scenarios
At Titan Property Investors, we are committed to helping homeowners in Little Rock explore all of their options. We can help you compare the potential sale price of your inherited property, the price you could get after making repairs, and the projected rental income. This way, you’ll have all the information you need to make an informed decision.
Need to Sell Your Inherited House in Little Rock, Arkansas?
If you’ve inherited a house in Little Rock, Arkansas, and need help navigating the decision to rent or sell, we can help. We offer fair cash offers for homes in any condition, and we can make the process as quick and easy as possible.
Give us a call at 501-365-8342 for more information. We’re here to help you make the right decision for your inherited property!