I just inherited my mother's home and I'm not sure whether to rent it out or sell it???

[Kandace Price]

My mother passed away August 6th. I am an only child and my father is gone, so I am her beneficiary for everything. The only problem is her home. She has a home here in Houston with a tax value of approximately 101,000. There is a mortgage at 5.625%, 22 years remaining, and a balance of 66,177. The mortgage with escrow is 654 per month. I am really at a loss as to what to do. I have my home, which is paid for, and a rental property that is mortgaged. I'm not sure if I want the hassle of another rental property, however, in todays housing market, I'm not sure if I will even break even. Any advice would be greatly appreciated.

[Scott Hubbard]

Originally posted by Kandace Price:

It's a middle class neighborhood. I'm sure I can get enough rent to cover the mortgage/ins./taxes. I had actually thought about buying more rental properties. If I could just get past the emotional thing....you know, this was my mother's home. And I wonder how well properties rent this time of year, with school already having started?

I actually going to go the other way since you have a great deal of emotions tied to your property. Renters will not take care of the property and your bound to make choices based on emotions. So, how will you feel having to wonder month to month whether a tenant is caring for your mother's property?

You should consider selling your mother's property and and using the equity to finance your rental investment business. You need to be able to run your business by making sound practical decisions aimed at maximizing value. I just think your judgment may get clouded because of the emotional ties and sometimes it is best to sell the home to a family who will treasure your mother's house as she once did.

Good Luck!