For many people, inheriting a home offers a financial opportunity. Unfortunately, not all homes are equal. If you’re inheriting a distressed home, you still have the chance to make money off it, but there’s also a danger.
The amount still owed on the home can significantly cut into the amount you receive for your inheritance. In some cases, the amount due on the home can even be worth more than the home itself!
Below, you’ll learn four of the options you have to protect your inheritance.
Renting the Home
When inheriting a home, you may choose to rent it. There are some serious advantages to this idea: if done correctly, renting the home out can provide you with an additional income stream. This allows you to pay off the mortgage over time and even begin turning a profit.
That said, you have to know what you’re doing if you choose this route. Renting a home is a business, and you need to treat it as such. How much are you going to be able to rent it out for? Will this cover the mortgage, property taxes, and any of the maintenance expenses that are liable to crop up?
There’s also a good chance you’ll need to do renovation on the home in order to make it suitable for renters.
While renting a home can work, you’re risking your time and money in the hope that things can work out.
Selling the Home
Selling a home is simpler than renting, and it allows you to get rid of any obligations more quickly.
However, there are risks here as well. What if no one chooses to buy the property? What if the amount you can sell it for doesn’t equal the total cost of the home?
If you choose to inherit a distressed home and then sell it, you’ll want to pay careful attention to how much you can get for the home. If you can sell your home quickly, this is simple. But if it takes you months to sell the home, you need to take into account all of the expenses that come with owning and selling a home.
Declining the Home
Even in the worst case scenario, inheriting a home shouldn’t be a burden. If you’re unable to rent or sell the home in order to recoup the cost of the mortgage, you have the option to decline inheriting the home entirely.
Obviously, this isn’t ideal. Even if the loan on your home is significant, it’s worth checking to make sure that the value of the home isn’t fully outstripped by the cost of the mortgage.
Want a Fast Cash Offer for Your Jacksonville Home?
If you’re inheriting a distressed home, you probably want to sell it fast. Luckily, that’s just what Freedom Home Buyers does for Jacksonville homeowners. If you want to sell your home fast for cash, you can rest easy: we offer cash offers on all homes that are presented to us.