If you’ve inherited an Idaho Falls property and you’re not sure what to do with it, we’re going to do our best to help you.
For some people, it’s easy. They move right into the home or they sell it. But, if you know you don’t want to live there and you’d like to consider all the potential options, let’s take a look at where you have the most to gain. Maybe you’ll want to rent it out and hold the asset for a bit longer.
The sales market is pretty strong right now. Selling will deliver a nice price. However, deciding whether to rent or sell the property will depend on how you feel about short term gains versus long term gains. It will also depend on what your own financial plans are for the future.
Here are some things to consider when deciding whether you should sell or rent the investment property you’ve inherited.
Sell Now for Immediate Income
This is a good time to make some money on real estate. If you have no interest in being a landlord or allowing your asset to appreciate in value, it’s an ideal time to sell the home you’ve inherited. There’s a huge demand for homes right now, and if the property you’ve inherited is in good condition and located in a desirable neighborhood, you can likely earn some money. You’ll be giving up some steady rental income and you’ll lose a potentially great investment opportunity, but if you really need cash now, selling is a good idea.
Dreams of Investing in Idaho Falls Real Estate? Rent Out the Home.
If you aren’t in need of money and you’d like to earn more on this investment, hold onto it and rent it out.
You’ll earn some income every month in rent and you’ll also have a valuable asset that continues to grow in value year after year. This is a lot less risky than stocks and other investments. It’s a tangible asset and people will always need homes to live in.
Entering the real estate market as an investor isn’t always easy. But, this inherited home gives you an opportunity to get started as an investor without having to put up too much of your own cash. As you continue to get comfortable renting out your property, you can leverage the one you inherited and buy more rental homes if you want to.
Emotional Attachments to Property
Honestly assess your current emotional attachment to the property and the person who left it to you. If you’re renting it out, someone else will live in this home, and you’ll have little control over how they treat it. This may be a home you grew up in. It may have some strong memories and there may be an emotional connection. You’ll have to let go of all that and be willing to treat the property like a business if you’re going to rent it out. If you don’t think you can do that, selling may be your best option.
Consider the Idaho Falls Rental Market
You also need to consider whether you’re willing to invest in the property enough to prepare it for the rental market. You will likely need to take care of some cosmetic upgrades like new paint and new flooring. You may need to replace any old or dated appliances, wall coverings, and systems. The landscaping will have to be taken care of, and you’ll need to invest in marketing and professional cleaning.
There will always be maintenance costs and wear and tear due to tenants living in the home. You’ll have rental income when you hold onto the home, but you’ll also have to cover these expenses. If that’s not worth it to you, selling is your better option.
Whether you’re leaning towards selling your investment property or renting it out, contact us at Jacob Grant Property Management. We can help you navigate the process.