When you’ve inherited real estate in McAllen, it doesn’t necessarily mean congratulations are in order. Instead, it’s the beginning of a long emotionally difficult journey. However, as the clock keeps ticking, holding costs will begin to add up, and you’ll need to take quick action to manage the property, or the outcome could become costly.
Minor repairs that go unchecked can quickly become significant damage. In addition, you may face fines if an HOA is involved, violate zoning codes by allowing overgrowth of your landscaping, and it becomes apparent when a home has been abandoned for an extended period, tempting vandalism and criminal elements. Sticking your head in the sand is a decision that could lead to costly consequences, including increased stress. So read on as we explore these five tips for people who have inherited real estate in McAllen
Even if you don’t live close by, we can help you close remotely. We work with reputable title companies in the Rio Grande Valley and can arrange an out of state notary to help you with closing. We have even worked with owners who live abroad and have no intentions to coming to the US to deal with the paperwork. That is done scheduling notary services with the American Consulates using proper legal chanels.
If you inherited a fixer upper in Hidalgo County, Texas, at Dolfin RGV we can help! Keep reading if you need more info.
Gift Deed
Our first tip for people who have inherited real estate in McAllen is to give it to a family member. However, you should be aware of the tax implications of this option, which could be more costly than leaving it as an inheritance. Therefore, you should consult an experienced real estate tax adviser whose recommendations you should consider before transferring the property. Usually, the beneficiaries receive a step-up in basis for tax purposes; however, it is important to check with a tax professiona to clarify your specific situation.
And always check if the house is title is clean and properly transferred to your name to avoid costly delays if you want to sell down the road.
Move In
Our next tip for people who have inherited real estate in McAllen is to consider taking up residence. While well-meaning loved ones or close friends may have left you a piece of real estate as a token of their affection, life is not often like fairy tales. Their property may not be the type of home you’ve always dreamed of owning, or you may already live in the home of your dreams. Maybe it is not feasible for you to relocate due to work or other personal issues. If the property is located in another state or across the country… it may not make sense to move in. Or perhaps you’ve inherited a home in a state of physical or financial distress, draining your wallet instead of magically producing the windfall of cash everyone imagines an inheritance of real estate brings.
Rental Property
Another tip for people who have inherited real estate in McAllen is to rent it out as an income-producing property; however, this option can have hidden expenses. Nevertheless, you should understand the time commitment to managing a rental property. You’ll need the funds to afford periods of vacancy, handle repairs for your tenants promptly and deal with turnovers, which typically include replacements and upgrades to meet more current tenant demands and bring the highest return on the property. You’ll also need to deal with tenants, from the strict screening process to collecting back rent. You’ll also need to market to get tenants in place and possibly deal with evictions, which can be pretty intimidating, and missteps can be costly and time consuming. Finally, you need well-honed people skills and must follow all laws governing landlords with any HOA, local ordinances, or state or federal laws, including in your advertising.
If you don’t want to rent your inherited home, you may consider making a direct sale to an investor, especially when liens or several owners are involved.
Vacation Home
For individuals who have inherited real estate in McAllen, consider transforming it into your second home if financially feasible. Having a personal getaway can be a luxury; however, it also entails the responsibilities that come with owning a vacation property. Besides the remaining mortgage, ongoing expenses such as insurance, taxes, and utilities for the inherited property, while already managing costs for your primary residence, can accumulate quickly. Upon careful calculation, it might be more cost-effective to opt for renting a luxury vacation home, allowing the landlord to handle the burdens and expenses.
Sell Directly
The best tip for people who have inherited real estate in McAllen is to take the quick and easy option, sell directly and walk away with cash in hand without paying high commissions and leave the work, worry, and financial risks associated with the property behind you. Working with a professional home buyer from Dolfin RGV will connect you with our network of the most highly regarded providers in the industry to help guide you with your property, including professional tax advisors. In addition, a local investor turned professional home buyer at Dolfin RGV can guide you through your selling options step-by-step with no obligation. At Dolfin RGV, we provide you with the information to make an educated decision about what will earn you the most profit and what is best for you when considering both your current personal and financial circumstances. When you receive an offer from a direct buyer at Dolfin RGV, we want you to agree it is fair; that is why our process is entirely transparent. Our contracts are simple, we follow the Texas Real Estate Code, there are no hidden fees, and we even provide you with a guaranteed closing date. We want you, our neighbors, to feel good about the deal you make with Dolfin RGV long after closing. Call Dolfin RGV at (956) 904 5234.