Losing a parent or a close relative can be devastating. Not only will you have to process grief, but you’ll also have to do things to make sure their estate is squared away. For example, you may have to take over a home that was left to you in the deceased person’s will. But is this a financial gift or a heavy burden? Here, we discuss the pros and cons of owning an inherited home.
Pros Of Owning An Inherited Property
1. Increase In Value
If you receive a property that’s in a good neighborhood, it’s likely the price will go up over time. The property could also be used to generate rental income. In short, an inherited property can be a cash cow, provided you take proper steps to make it one. That is, you’ll need to maintain the property and keep it up-to-date to ensure it can bring it handsome income.
2. A Way To Make Money By Renting Out Property
Renting out the property is ideal if you’re not using it as your main residence. Plus you can take advantage of certain tax deductions if the property is used to generate rental revenue.
Cons Of Owning An Inherited Property
1. Taxes
You’ll have to pay estate tax before you can inherit the property. And at the end of each year, Uncle Sam will want property tax. If you inherit a home that’s quite large, or it’s in a sought-after area, you could be paying a lot in taxes.
2. Maintenance
Remember that maintenance expenses and other expenses can severely cut into your monthly rental revenue. So if the house is on the older side, it may be a money pit.
3. Handling Tenants
Sketchy tenants can be a major issue, and dealing with them can take up a significant amount of your free time. A lousy tenant can also ruin your investment. You might lose thousands of dollars if they wreck your house or neglect to manage the grounds properly.
Conclusion
Before deciding to keep the property you’ve inherited, there are numerous things you should take into account. Once you’ve carefully weighed your options, you’ll be able to choose the best path. If you do decide to sell the home, you should sell to a reliable cash home buyer in Oklahoma City. At Bricktown Home Buyers, we buy houses in Oklahoma City, and we can close in as little as 30 days. Contact us to get a fair cash offer in under 24 hours. We buy properties as is, and we don’t charge commissions.