Inherited parent's home. Rent or sell.

[Anonymous]

As a landlord for a low maintenance place in a high rent area - SELL!

Dealing with tenants is a hassle, and I've had pretty good luck with tenants. I can't imaging having to deal with it for someplace you're not local to and a house that will need a lot of maintenance, and in an area were you are likely to have tenants with potential cash flow problems.

Big nope on becoming a landlord.

Sell and invest any proceeds. Also, you might want to research what you will really need to do to sell. It may not be as much as you think unless the place is completely falling apart.

[Anonymous]

100% sell. Nobody should be a landlord without wanting it very badly, and doing a cost/benefit analysis as a business decision only.

[Anonymous]

Sell it. The tenants in an area that only cost 150k will be more difficult to deal with. It is not worth the hassle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

My mother passed (I'm an only child) and I'll inherit her house. The house would need fairly significant repairs (cosmetic and, likely, substantive) to sell for max value or rent to a tenant. The neighborhood would be considered poor but has been turning around quickly.

I could sell and likely net ~$150K or rent and net ~$1,000/month in rent (after paying for repairs using the house's equity) with the ability to sale later and collect (completely speculative) appreciation.

Would you sell or rent the place? Any proceeds from a sale would likely just be invested. Same with any collected rent (accounting for building a maintenance fund).

I'm leaning 90% towards selling but acknowledge I may be missing something in my thinking. What would you consider in making a decision?

Assuming the $150K is after you've spent the same amount of money on repairs as you would if you were to rent, that's an 8% rental return. Do you really want the hassle of being a landlord? Also, look at what you can get if you were to sell the house as-is.

I don't know how wealthy you are, but $150K is not a lot of money for many people around here. If the house is close enough, why not fix it up just enough to be used as a family vacation spot?

OP described the neighborhood as "the poorest zipcode in a major Southereastern city." Doesn't sound like my idea of a vacation.

[Anonymous]

Sell and invest the money. Seriously be done with it.

[Anonymous]

sell

[Anonymous]

You don’t want to rent to poor people. Sell it and run.

[Anonymous]

Hijacking this thread b/c I will likely have this scenario (god willing not any time soon! But, at some point (not soon!!) I guess). The home I would inherit is paid off and in nice part of San Diego (worth 1.5 million or so). Sell? Rent? keep as second home??

[Anonymous]

Anonymous wrote:Sell. Recession maybe coming. Very good time to put money into the market.
With the recession and slightly rising unemployment, less qualified tenants may not be able to pay. Qualified tenants want a nice house.

This. Unless that house in on water somewhere nice get rid of it

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do you want to be a landlord?

Not particularly but I'd be willing if it meant a larger "windfall".

Sell. Set the price reasonably. Don't do extensive renovations. Offload it.

[Anonymous]

Anonymous wrote:Hijacking this thread b/c I will likely have this scenario (god willing not any time soon! But, at some point (not soon!!) I guess). The home I would inherit is paid off and in nice part of San Diego (worth 1.5 million or so). Sell? Rent? keep as second home??

That’s different. Vacay for me. I love Cali

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do you want to be a landlord?

Not particularly but I'd be willing if it meant a larger "windfall".

Sell. Set the price appropriately. Don't do extensive renovations.

[Anonymous]

I’ve watched my SIL be a landlord for decades and I don’t know why she does it. It is SUCH a hassle, every single time she gets a new tenant. It would never be worth it to me for the meager amount she profits. After taxes and maintenance, not to mention repairs, it’s insane to me. For decades she’s been waiting for the “windfall” you mention, and she’d probably have it had she invested instead.

[Anonymous]

Sell

[Anonymous]

SELL. I was a landlord in a poorish area. I was lucky to rent mostly to friends who I trusted, but lots of times I left the unit unrented because the quality of applicants was not good. You can deduct taxes when you are a landlord but if you sell, the tax burden can be high.

There is a 1 percent rule that I read about. If the home is worth 150k you should be collecting 1500 in rent or it's not worth it. I am so glad I sold my place.