I just inherited my parents rental property and don’t know what to do sell, be a landlord, managers?

If you inherit a rental property you need to know your options, you can sell, keep renting, refinance, etc.  Here’s how to pick which option is best for you and what to do about it next.

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com.

I just inherited my parents rental property and don’t know what to do sell, be a landlord, managers?

Indy Anna Explains…

– Options for keeping the property

– Items to make sure are covered before deciding what to do

– One quick fix to help solve your issues nearly overnight (in some cases)

Here’s the question that came in;

“My family has a rental property that’s been in the family for decades. The rent isn’t much, and the upkeep is becoming a hassle for my parents.  I know nothing about real estate investing. I’m considering taking control of the property, but wanted to see if it’s a good idea to use a property management company that will handle finding renters and upkeep. Thoughts?”

There are a couple of different ways that you can go with this situation. If there are repairs needed, your parents can consider selling, either ‘as-is’ with an agent, or finding a wholesaler who would create an assignable contract and ‘assign’ it to an investor to buy.

You have a few options with investors and buyers.

The investor would then either make it a fix and flip situation (based on it being in need of repair) or (if minimal repair) make it into another buy and hold investment.

Another thing you might consider is doing a lease with option purchase with the current tenants in place and have it written in the contract they are to pay for repairs. This usually works okay if they’ve been there a long time and already consider it home. 

The terms are important.

The terms on this would usually be a down payment (the upfront money – plus they may have a tax refund they want to use as a down payment if setting this up in Q1), money over time (terms of the contract, usually two years), then payment on the backend of the deal (when they qualify for traditional financing {as most renters will use this time to improve credit} and the house is officially purchased).

One more thing to consider (if this has been held a long time in your family) is it a case where rent is below market value, >$30K or so would make drastic improvements and rent would be significantly increased and worth holding onto- this would be a ‘micro flipping’ situation.

Well not really micro-flipping…

That covers the options possible in this case- well most of them, and I’ll get to the one quick fix (may not be ideal for all people/situations) soon. For now, moving onto things to consider;

If you decide to hold onto the property, I would at minimum reevaluate the situation by getting a market value analysis (probably a good idea anyway for inheritance purposes and verifying with a CPA/Elder or Family law attorney to ascertain what to do about avoiding inheritance tax if possible.

Single?

One more thing here is idk if you’re single or not, but in most states property acquired through means of inheritance would not be considered joint property if dissolution of marriage were to transpire – who is going to be on the title and a great place for professional legal advice BEFORE you get into final decisions on what  do. This applies to siblings as well and who will be responsible for property, will it be an LLC then etc?

All of this info  should provide you with some information on what to do as far as your next step as well when you decide on leaving as is or doing a ‘micro flip’- by using this info with comps.

There may be a “quick fix”…

Now the ‘quick fix’ (again may not be what everyone wants but if you’re in a different state from the rental property and don’t know where else to go but want to keep it)- 

Find a property manager who can manage this property for you and take care of the day to day/as needed items – making you a very passive investor in the situation. Keep in mind the fee for a PM will usually range from 10-15% of the monthly rental income. 

So remember…

Use a tool (usually online free) to determine avg area rents then and go from there on what you will be paying a PM for either keeping it as is or updating- is it a microflip to be made?

Also, the biggest suggestion in working with a PM is to call past references and truly get a feel for their ability to work for you effectively. Do a background check on your PM just as you would any tenant in other words. I would also suggest verification of lease terms with current tenants and make sure everything looks up to speed there before assuming (legally) the responsibility of a lease.

So to recap we covered:

– Options for keeping the property

– Items to make sure are covered before deciding what to do

– One quick fix to help (in some cases)

If you find yourself in a situation like this in Indiana, or have other questions you need help with that this video didn’t answer email/text me below. 

Thanks! 

Make the universe SMILE.  = )

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.  Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys you can go to our People Page at https://www.BigReia.com/people.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download: https://www.BigReia.com/Contracts.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

Go to BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
317-969-5619 (YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.