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Updated over 4 years ago,

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4
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1
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Nick Ro
1
Votes |
4
Posts

Need input from experienced real estate pros. re: inheritance

Nick Ro
Posted

 Inherited 4 homes in SOCal. 2 are paid off, one has 79,000 left and one has 130,000 mortgage. House we live in is paid off. 3 others are rented to great renters. Rents pay the mortgage, property taxes, insurance, maintenance, etc...  Our home is great but lacking space, small kitchen, small rooms, small closets, small bathrooms, and I'd love a pool for my kids.  

Thought about borrowing on our home to do one of the following: 

---Add on a bigger master, bathroom, closet, would only be able to upgrade kitchen not add sq. footage. and putting in a small pool would be possible in the yard we have. We would Stay in our 'okay' neighborhood, not adding any other big mortgages...

---We could rent our home for probably $3000 mo. and buy a home that already has the space and possibly a pool as well.  Would be in a better neighborhood. Would add another big mortgage payment but we'd have 4 houses rented.  Of course we could sell a house and easily buy a bigger house but we like the income from the rents and hope to pass the houses down to our kids as they were passed down to us (the property taxes are insanely cheap too).  

---Another option that we thought about was : My mothers property is at least an acre - she could split the property and we would buy the land and build a new house behind hers, not having to pay for a pool as she has one we could use anytime.  She lives in a neighborhood where homes are 1-2 million.  So we would live in an amazing neighborhood, but behind her home, not curbside             ( common in that area and not a deal breaker for us )  we would have to start from the ground up, that will be a huge job but I could make something exactly the way I want, spending close to what I would for a home that isn't my dream home and Not in that neighborhood.  ( She may sell the land at some point to someone else ) so I do like the idea of OUR family living there, kids can stay close to grandma and family... and the property would be worth way more because of the location alone.  

Grandparents were so smart and made moves that set us up. I want to continue to make that work for us and make it grow... It is just scary as I want to do the smartest thing.  We haven't made any moves yet, Been playing it safe and wonder if maybe we should just be happy in our house and do nothing but I feel that is not the best thing to do.  Looking for some experienced investors to chime in and advise on what you would do. I know rates are really low right now, I browse houses online, I see great deals that would be great for us  but of course they get snagged quick and I just want to be ready should I see the perfect opportunity.  I just don't even know if that is the right move to make especially right now considering the global pandemic and all.   

Thank you in advance for anyone who read and responds...

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