Keep inherited property or sell?

Question

Any tools or formulas that should be used when deciding this?

My sister and I have inherited my mother’s house, no mortgage.

Options are:

1-Rent it

2-Buy out my half and rent it (would need a home equity loan-?)

3-Sell it!

Thanks!

Malcomb Stapel · Answer

They have a whole rental calculator tool up in the toolbar. However, I don't know if they will let you use it if your not a pro member. If there is no mortgage and you have 100% equity position, it's probably a good candidate to sell. Especially if you are thinking of grabbing up several other rentals. You can use your share of the proceeds and divide it into several more properties.

Or if it's a good candidate for an STR, it could give you quite a pay bump.

If you want rental numbers and PM me I can probably get a rough estimate for you.

Scott Trench · Answer

@Maribel Canino yes, you can use our rental property calculator under the "tools" in the navigation at the top of the screen. You can use it 5 times for free this month.

What I'd do is I would esttimate the amount of money you would make and keep after taxes and closing costs if you sold the property today. Then I'd run an analysis on what you expect from this property, and a few alternatives properties you might invest in if you were to sell the property and use the after-closing costs and taxes proceeds to reinvest in an income property in that market, or another market.

Layne T. · Answer

@Maribel Canino Another important question is condition of property - does it need any significant repairs? If you have it free and clear and are in a good market, I would keep it but you would need a great property manager especially if you are new to this. What market are you in?

Maribel Canino · Answer

thanks!

Dwayne Poster · Answer

what does your sister say?

Keep inherited property or sell?

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