How to handle an inherited a home?

1 Reply

Hello bigger pockets family I would like to get your take on a situation.

I have a 61 year old retired family member that's currently renting for $1350 a month and they recently inherited a home in the DFW area. It's located in a working class neighborhood. The home needs a little work. A second mortgage was taken out by the deceased relative. The details are below.

I would like to know what you all think, repair and live in it or repair and rent it out.

Home was built in 1968

3 Bed /2 Bath 1760 sqft

Mortgage Balance = $25K

Estimated Rehab = ($10K resell) ($6K rental)

ARV = $115K

Rental Estimate $1250

I'll let some more knowledge than I respond to the financial pros or cons. Consider whether or not your family member might be better off having a landlord be responsible for keeping up the house? Even if its financially beneficial to owner occupy would they be comfortable in the neighborhood? Nice to inherit a house!