selling older inherited house ? or maybe not...
My sister and I inherited a house built in the 1960s with a pool that was unused for many years and has leaves and a couple of turtles swimming around in it. It also has a fireplace. Also, the neighborhood may not be all that great. We have fixed many issues in the old house, we are working on the pool and we are thinking of selling it instead of renting it and buying something more simple to rent. We don't trust people with operating the fireplace and think the pool will be a hassle to maintain and a drain on revenue. It has really old carpet that needs to be replaced in a couple rooms, but the rest is tile and hardwood.
Options:
1. Sell as is to an investor
2. fix the rest of it up and sell
3. rent (we are not too sure about this one)
If we do finish fixing it up to put on the market, how do we know what the right amount to fix/improve is? Or the minimum? Should we get an inspector to look at it now? Is there a list?
What are your thoughts?
Thanks.
College town is the key to making this decision. College students for the most part do not care about the age or the what features your home as to offer. It needs to be affordable and off campus.
I would do option 3. You have a free home to make cash flow off of. I would consider filling in the pool and installing a gas fire place. Replace all the carpet with vinyl flooring, fresh coat of paint and find a tenant where the parents pay the rent. Save up your cash and use those funds for a down payment to buy a second property. If the neighborhood holds your rent low, after getting your second property cash flowing, sell it off, use the money to buy else where. You have a good opportunity here.
#3 Managing Your Property Contributor
I think you've answered your own question-finish what you are doing and sell it. Then buy in another area that you like better and are happier with the age of the home.
My vote is to get a minimum viable product. Fix up the house enough that it will be livable and the tenants will have some pride in ownership. Once it is rented and cash-flowing, do a cash-out refinance (usually 75% of the value). Take that money to invest into 1 or 2 more to get the most out of your investment!