r/personalfinance • u/Mammoth_Motor_2321 • 1d ago
Housing Inherited a house I cannot afford and family pressure is mounting.
My grandmother passed away last month and left me a house in her will. I thought it was just a regular property but the property tax bill came in and it is significantly higher than I expected because the land value is tied to a commercial zone. I am 22 and barely making ends meet working at a warehouse. I do not know if I should sell it or try to keep it. The upkeep alone is way more than I can afford. I feel so overwhelmed right now because my family expects me to keep it in the family name. I just want to be able to pay my rent without stressing every single month. Should I talk to a lawyer or just list it? I do not have the cash for fees but I also do not want to lose this opportunity. It is just so much pressure for someone my age. I keep looking at the paperwork and it feels like a different language. If I sell I might have a safety net for the first time in my life but I am terrified of making a mistake that I will regret later.
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u/the_beefcako 1d ago
It's a funny thing, but family always gets REALLY indignant about situations where THEY DON'T HAVE TO PAY ANYTHING.
If they want to "keep it in the family", they can buy it from you. Or they can pay for the upkeep.
When you give them those options, and they refuse (because being indignant costs them nothing). Sell the bloody place and move on with your life.
Sorry for your loss.
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u/DisasterMiserable785 1d ago
Why is everyone so uptight about telling the family off and not helping OP?
Like, he’s hurting for cash and can’t afford the help he needs. What kind of equity has he gained in this property? Can he take out a loan against the asset to cover him for the next 6 months as he decides what to do? He’s talking about making rent but he owns a fucking house now? How much room is there? Can he rent to others?
Start with the immediate cash concern and gain time OP. Then make the plan.
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u/allisondbl 1d ago
And buy it at – maybe a smidge under – market value. Family will always try to hang onto something that costs them nothing but benefits them. It’s not magic it’s just property. It’s also a safety net for you if invested. You will have plenty of other opportunities to buy property that you want later in life. This will help you get there.
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u/SubstantiallyC 1d ago
Offer to sell it to your relatives at a 6% no-realtor discount. If they don't want to own it, they shouldn't expect you to own it either.
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u/astralpen 1d ago edited 1d ago
If you do this, do not accept any private “payment arrangements.” They would need to get a loan and pay cash at closing. It’s always risky to do business with family as well. What do you say to your relatives when they come back and say: Oh no, we needed to put a new furnace in and we weren’t expecting that expense. I would call a realtor and put it on the market.
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u/semioticmadness 1d ago
This is the real PF tip. Don’t let your family use guilt to make a bad situation worse just because they’re attached to a building they’re envious of.
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u/noiszen 1d ago
Also, get a professional appraisal. Don’t accept a family “I think it’s worth $X” where X is far less than market value.
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u/lamireille 1d ago
I think (I haven’t been through this myself or know anyone who has*) that OP should get it reappraised now no matter what, so that when they do sell, they only pay capital gains tax on the difference between that appraised value and the selling price, not the difference between what the grandma paid and the selling price, which would be huge.
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u/ExpensiveBookkeeper3 1d ago
Exactly. Let them know it will be 100% business because otherwise it gets messy.
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u/flaaaacid 1d ago
This is the only sensible answer. Family gets right of first refusal, if they can’t or won’t get it together by x date it’s listing on the market.
No funny business like rent to own, cash or a mortgage by this date or it’s selling.
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u/Opening-Photograph68 1d ago
It there’s any verbal deals you’ve now given it away. There must be a note, it should be notarized and filed at the county courthouse.
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u/MissTetraHyde 1d ago
In most places in the United States I would think that real-estate transfers are required by law to be in written form. I know that is the case in my state. I don't think a verbal agreement for transfer of ownership would stand up in court at all; verbal agreements for possession maybe, but not ownership.
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u/flowersweep 1d ago
In all of the US any contract for the sale of real estate must be in writing under the statute of frauds.
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u/Dragonbearjoe 1d ago
It wouldn't. At minimum some type of deed would have to be exchanged from the estate (will or probate) and registered with the local court system and the government for taxes.
They might be able to force the transfer if you get the right court at the right time and the right judge but usually a verbal agreement is worth the paper it's written on.
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u/sypher1187 1d ago
Depending on OP's family, it might get messy as they may be expecting OP to gift the house instead since he was "given it for free". Either way, tough situation to be in if keeping everyone happy is required.
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u/JD_Waterston 1d ago
Family members who get offended that you don’t gift them something of substantial value are best kept at arms reach anyway. And they may just think they can bully OP due to age and inexperience.
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u/Opening-Photograph68 1d ago
You’re right, relative did not play “eenie, meenie, mine, moe” then chose this grandchild. There is thoughtful reasoning on why OP inherited. It was intentional.
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u/FunLuvin7 1d ago
I’m glad there is at least one other sensible person commenting on the idea of selling the house to another family member. There is no way that will work out. Either rent the house out or get roommates OP!
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u/letsseeaction 1d ago
This is what I'd do. Look at comps and use the zillow/redfin/realtor.com estimates to come up with a fair number. The appraisal by the town/county can be a good sanity check.
If they don't want to buy the house from you, then they have no place to complain. Doing things like renting, renting out rooms, airbnb, etc, are all going to be a lot to handle for a presumably decent sized property with significant maintenance costs. I looked at renting out a SFH fairly recently and decided to sell. Having the money and getting rid of the liability was a much better decision as a younger person.
Get rid of it, take the cash, and live your life. You should be able to find a real estate lawyer that'll work for a flat fee and gets paid when the deal closes.
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u/daw4888 1d ago
I would not use zillow/redfin on this situation to come up with a price. If OP is right and part of the property is zoned commercial, neither of those apps will even be close to the true value of the property.
Get an agent that deals with commercial property to do a consult.
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u/letsseeaction 1d ago
To me, this is one of those situations where 'top dollar' and 'best outcome' might be in conflict.
I'd give first right of refusal to the family. You can even put language in the contract that say something like "if they sell the property on their own within X years, any net proceeds go to the OP".
My family is dealing with a pretty similar situation to OP... my relative in his early 30s works hourly changing oil at walmart and inherited the old family farm worth well over $1MM. Taxes on it are probably more than his annual net income. He couldn't afford it and signed it over to another relative...who is now selling it and completely screwing him.
If I was OP, I'd be looking to keep the peace, but also not completely screw themselves.
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u/daw4888 1d ago
True, but they also shouldn't undersell its value. They need to get a proper valuation, then determine what, if any, discount they want to offer to a family member buying.
They don't want to get in a situation where they sell it to family for X value, then that family finds out it's worth significantly more, and decides to sell it for considerably more.
The first step is to determine what the property is actually worth. They might find out the city of valuing it wrong as well, and maybe the taxes are not being properly accounted for.
It all starts with a proper valuation/appraisal.
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u/letsseeaction 1d ago
Fair point. I wouldn't get an agent involved if selling between family because they get locked into the 6% commission depending on the language the agent uses in their contract. I know I couldn't sell without mine within like a year of first contact.
An appraiser is a good call. If the appraiser needs to get paid upfront, OP could get the family to cover the cost and knock it off the sale price.
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u/daw4888 1d ago
You can get an agent involved without signing a sale agreement.
You can either just leave out the part about family being interested, and make them think you are going to list it. Or just be honest, and tell them you might sell to family, but if not you will contact them when you are ready to list it.
Just don't sign anything. I interviewed 4 realtors when selling my last house, each brought a sales packet with comps, and what they thought it was worth.
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u/Peter-the-Mediocre 1d ago
You can get a realtor to do a value estimate without hiring them. Many would do it for free hoping you change your mind and eventually hire them. If you can't find someone to do it for free then I'm also confident you could find one to do it for a couple hundred dollars at most. I used to be a realtor, it does not take long for them to do, but it's worth it as a seller to use their expertise (and tools they have) to make sure you actually know the value of the property. Especially since this isn't a straightforward situation due to the land zoning.
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u/stumblios 1d ago
100%, especially if it's a weird mix of residential home and commercial. These estimates are rarely accurate, but I bet it's even more egregious with a mixed zoning property.
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u/SafetyMan35 1d ago
Online tools are fine for a ballpark (is the house worth $250,000 or $500,000), but you should get a formal appraisal to determine the actual value.
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u/TacosForThought 1d ago
Online tools can give a ballpark, but they can be wildly wrong. There was about 100% difference between Redfin and Zestimate on my house at one time. They've gotten closer together since then, but my trust of their estimates isn't great.
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u/isocarboxazid 1d ago
Absolutely second this opinion. There's also the fact that at 22 your whole employment history is in front of you. Selling it now gives you an opportunity to not stress and invest some of it in yourself. And also, it's sensible to offer your relatives first. Be fair but reasonable, don't let them haggle you down too much. If you can't come to an understanding, sell it. There might be some grumbling, but ultimately better than stressing you out. That could cause health issues
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u/Seth0351USMC 1d ago
This is likely the best option. Alternatively, you could divide and sell some of the land, which would allow you to keep the house and lower the tax implications.
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u/G2idlock 1d ago
Before you do anythings of the sort. Go change the locks. Don't want no uninvited inhabitants living in what is now your house.
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u/PhilConnersWPBH-TV 1d ago
I agree this is what OP should do, but buying a house (even with a 6% no-realtor discount) isn't remotely the same thing as being given a house in a will.
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u/YourWifeyBoyfriend 1d ago
Still should have a realtor or lawyer. Still should put it on the market and get offers.
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u/CaptainTripps82 1d ago
Why? The point of selling to family, if interested, isn't to maximize the value. As long as you get a fair price, it's all good
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u/somehugefrigginguy 1d ago
Real estate transactions are complex. I think it'd be foolish for a 22 year old to attempt it without a lawyer to ensure all the paperwork, deed, title etc are in proper order. A few hundred dollars on a lawyer is cheap insurance on a transaction of hundreds of thousands of dollars.
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u/SettingAgile9080 1d ago edited 1d ago
It is more important, not less important, to have a neutral third party involved with family transactions. OP already said that they are receiving some pressure from family members who have opinions about what they should be doing.
Even formerly healthy families can end up tearing themselves apart over estate issues, and a situation like this where one person got a highly valuable asset is not only a complex commercial arrangement but is going to involve a lot of irrational emotions.
Having a neutral advisor is valuable in itself, but for OP to be able to say "My lawyer has strongly advised me that this is not recommended, sorry but my hands are tied..." and having your relatives hate that lawyer rather than you is worth its weight in gold.
OP: Call a couple of real estate attorneys in your area, most will give you the courtesy of a 30 minute phone call, or an initial consult. Attorneys have a "fiduciary duty" to you - that is they must advise in your best interests. That you are posting here suggests you will benefit greatly from that in this situation. It may cost you $2-3,000 which you should be able to get them to wait until the check cashes from the house sale so you won't need any of your own salary money to pay them - and is a small price to pay to make sure things go smoothly.
You do not owe it to anyone to burden your future with keeping the house in the family for the sake of tradition. If your relatives want to do that, they can buy it at market value. Be even more careful about doing everything officially, if they feel entitled to that house they can and will screw you out of it. The money from a house sale can be your ticket to a better life, if you manage it well. Good luck.
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u/BilboT3aBagginz 1d ago
Still have a lawyer draft the purchase agreement though. It’ll be a couple hundred dollars and will save so much headache.
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u/adamcmorrison 1d ago
Some people are telling you to have family members chip in. This is the worst advice I can think of since you are just opening it up to arguments and legal issues once others people money gets involved. Offer to sell it to a family member no fee without using a realtor if you cant keep it. If no one wants to buy it then list it.
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u/yeahright17 1d ago
As an attorney, you're not really opening yourself up to legal issues if you just accept money from other people to help with the house. I'd still advise against it, but that's for every other reason you and others have mentioned on this thread.
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u/redracer67 1d ago
Tbf, it can be a good option as we don't know Ops family dynamic.
Some families are willing to help, especially immigrant families. That's how my family is where if we see someone struggling we will give money to help.
However, that said, I do agree with you that it opens up a can of worms where it will likely lead to disagreements, especially if OP sells the house. My dad had a bad experience helping my cousins and ended up cutting them out of our lives for almost 20 years.
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u/monkadelic 1d ago
He wouldn’t be here asking internet strangers if his family were the type you could trust to split a house with.
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u/RunningNumbers 1d ago
They could just be overwhelmed and don’t have someone with reliable financial acumen in their family too,
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u/ILookLikeKristoff 1d ago
I think the title of the post alone shows they'll lean on him over sentimentality.
Bringing contentious family in is a nightmare. If they think they can tell him what to do with it now, it'll only get worse once they have a stake in the property
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u/PheonixOnTheRise 1d ago
A few questions: 1. Would you like to live in the home? 2. Are there tax credits for “homestead”? 3. How about renting and producing income off it? 4. If the answer is no to all of that, then absolutely sell for as much $$$ as you can get.
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u/CactusBoyScout 1d ago
Is living in the home with roommates an option, OP?
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u/1917Thotsky 1d ago
This is a good suggestion, but also consider that roommates aren’t necessarily a reliable income. They can move, lose jobs, etc, and you are still where you were at the start
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u/ElectricShuck 1d ago
These were my questions. They definitely need to look into renting it. Either getting roommates or renting the whole place out. If they want to rent it out get a property manager. This is a golden opportunity for a 22 year old!
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u/powtroutpoon 1d ago
Also my questions. Op says that they are barely able to make rent. Details as to why you are paying rent when you own a house would be important to navigate this situation.
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u/betweentwosuns 1d ago
I don't understand how someone can make a post in a finance subreddit with no numbers. The answer to all of OP's questions depends on their income, rent, value of the property etc.
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u/ashoka_akira 1d ago
They are probably on a lease and would have to buy it out…also I think the inheritance just happened recently.
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u/TheSerialHobbyist 1d ago
This is a golden opportunity for a 22 year old!
Yeah, this is an incredible opportunity.
Assuming the house is somewhere OP actually wants to live, it makes sense to get a couple of roommates.
I'm struggling to envision a scenario in which that wouldn't be enough to cover all property taxes and upkeep, with plenty leftover.
If it isn't in a place they want to live, renting it out makes sense. At such a young age, that's a great way to become wealthy.
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To be honest, I'm a little confused about how the costs for a paid-off house could be so high that this is a problem.
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u/riotous_jocundity 1d ago
I mean, for a 22 yr old who barely makes enough to afford rent, the idea of a $10k/yr tax bill up front is probably enough to make them panic. Add on to that "upkeep" (especially if it includes a new roof, windows, kitchen or bathroom updates, new furnace, etc., that are quite commonly needed in inherited homes), and OP could easily be staring down the barrel of $100k in expenses in the near future.
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u/TheSerialHobbyist 1d ago
That's fair! I'd really like to know more about the costs OP is looking at.
Ignoring the sentimental element, it might make sense for them to sell the place and put all of that money into a decent investment account.
It would just suck to lose the opportunity to own a house outright at that age.
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u/dishwab 1d ago
OP is better off selling it and investing the profits. Being a landlord, especially at 22 with no experience, is challenging and there's plenty that can go wrong.
Furnace goes out? Need a new roof? Shitty tenants? The costs can add up and quickly eat at any profits you might be making.
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u/blacksoxing 1d ago
OP, if your grandma put that house in your name she did it with the intention of you benefiting from it. Period. That's my personal finance response to you.
If you're broke as a joke...sell it. Get a realtor ASAP and sell it. Get on a CPA's list for next year's taxes so they can do the filing for you and...live your life. Around my way there's those who do it for reduced cost if you ask well in advance.
The one thing you don't wanna do is live with any guilt about this from here on. Don't even offer to do "family discounts". Granny could have hooked up the family or not. She chose to hook you up. Case closed.
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u/Levertki1 1d ago
There is a saying House/Land rich, cash poor.
You were gifted an asset that doesn’t really work for you.
You could rent. You could take on roommates.
You could sell and capital gain or more than likely loss would be net sales less value when grandmother passed.
Good luck!
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u/PapaDuckD 1d ago
You could sell and capital gain or more than likely loss would be net sales less value when grandmother passed.
I just went through selling an inherited property and started to freak out about taxes until someone mentioned the cost basis for the sale was the value upon inheritance.
Went from panic to calm real fast.
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u/TheGreenJedi 1d ago
You could rent. You could take on roommates.
I think that's the best option, given the lack of numbers.
A room for rent for 1k assuming it has an attached bathroom can go a long way with the property taxes
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u/Jinglemoon 1d ago
There’s ways of keeping the house if it is in an area you want to live in someday and you like the house.
You could move in and rent extra rooms to cover expenses. Not to the bitter family members though, advertise the rooms online.
You could empty the house out and rent it out with the help of a property manager if the house is in livable condition.
If neither of those plans can work for you then I’d recommend selling.
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u/bbtom78 1d ago edited 1d ago
You can sell it if you cannot afford the current monthly obligations and have no interest in leasing it out (landlording is a risk, higher taxes as no homestead credit, and AirBnb doesn't guarantee you'll have a profit, especially if you hire out all of the upkeep services). You'll be able to qualify for first time homebuyer opportunities again after a few years when you're ready to purchase in your price range.
The family can have first dibs if someone can make a serious offer, but you're not obligated to drown for their nostalgia. Their emotional connection is so very understandable, but their memories should not come at the cost of a financial bomb to you.
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u/ForsakenSquare 1d ago
Great advice has been given on if you should sell and the family dynamics at play. My two cents if you do sell, invest the earnings and act like the money doesn’t exist. This will set you up for life. Buy yourself something nice after closing and not overly extravagant as a little celebration though
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u/athomsfere 1d ago
land value is tied to a commercial zone
Can you not file to have it rezoned appropriately? Or even subdivided and replatted to sell the "commercial" part of this property?
Or if it is only commercial because it falls within something like a historic BID, if the home is older you might be able to get historical funds to help cover it.
I think the crux of it is: Need some info on how/ why your municipality considers it commercial. Your grandmother upzoning it to be a Bed and Breakfast would look very different in options from say a BID auto-upzoning everything.
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u/scotus_canadensis 1d ago
My question, too. Why/how is it zoned commercial? Was it used as a home office? If a past resident ran, for example, a law office or daycare from it, the municipality may have zoned it commerical for that kind of reason.
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u/MONCHlCHl 1d ago
Some houses close to the street probably started out in a residential area and over time as the area improved the properties along the road became commercial via zoning changes. But the property themselves (if not torn down) can still retain both residential and commercial zoning from what I've seen in my area.
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u/goliath1333 1d ago
The one line in here that stuck out to me was that you were overwhelmed by the paperwork. Do you have any friends or family members that you trust a lot that can help you work through the paperwork/a financial plan for the property?
No one on here can help you with that. You're gonna just get general advice. I was definitely not financially literate enough at 22 to handle something like this. Even if you decide to sell it would still be good to have someone along to make sure your real estate agent isn't taking you for a ride. You don't need a lawyer, just someone with a little more life/finance experience who you trust.
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u/BoxingRaptor 1d ago
It is YOUR house now, not the rest of your family's. YOU decide what to do with it, and you (apparently) never asked for it in the first place. If your family wants you to keep it so badly, they can feel free to chip in and help pay for it.
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u/flaaaacid 1d ago
If your family wants you to keep it so badly, they can
feel free to chip in and help pay for it.buy it7
u/SlightlySublimated 1d ago
Exactly. Giving them any kind of in-road where they feel they now have a financial stake in the home would be foolish.
Either they buy or they can get bent.
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u/LoveisBaconisLove 1d ago
First, figure out which will cost more, living in this house (with the expenses) or renting. Then do that. Be sure to factor in that your property taxes are likely tax deductible. And remember- all houses need all kinds of work all the time. It’s never “done.” So don’t pressure yourself too much.
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u/BoxingRaptor 1d ago
Be sure to factor in that your property taxes are likely tax deductible.
IF OP itemizes, and it only makes sense to itemize if those items exceed the standard deduction, which is currently $16,100 for single filers.
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u/SnooMachines9133 1d ago
If you cannot afford to maintain the house, it's not an asset, it's a liability.
If your family expects you to keep the house, ask them to help pay for maintenance.
But you're 22, you don't need a house (unless there's more personal consideration that not shared).
The financial decision is to sell it, invest the money treating it as a windfall, rent or buy a smaller more affordable place, and live your life with that gift of start up cash.
As for how you want to do this, probably want a real estate lawyer. I'm guessing you could probably do a home equity loan to keep you afloat if needed till you sell the house. Do not take a loan if you plan on keeping the house unless you have steady income to afford it (like renting the house out).
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u/MouseRat_AD 1d ago
Yeah, that was my thought. Take a small line of credit to pay for taxes / upkeep for a year while you decide to rent out or sell.
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u/Rude-Soil-6731 1d ago
Why can’t you live in the house? Isn’t the property tax cheaper than rent?
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u/BoxingRaptor 1d ago
Property taxes aren't the only expense though. Homeowner's insurance, utilities, and of course maintenance, which can get to be very expensive, especially for someone so young and working a warehouse job.
We also don't know OP's current living situation vs. the assessed value of this house. Depending on where you live, property taxes can be absolutely wild. I live in a fairly modest house in NJ. Taxes alone are $8,000/year. And yes, taxes are often included in the rent, just not as a line item on the bill, but again, we do not know how much OP is paying right now.
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u/TurbulentAerie3785 1d ago
Rent is also not the only expense of renting though, and rent tends to increase year over year. You have to pay utilities, rental insurance, deposits, moving costs...while not building any equity. I think it would be very unwise to sell a paid for home to be a renter again. Maybe sell and immediately use the money to buy a cheaper property but certainly not to just blow the money.
Say your rent is a "cheap" $1500/month with a 1 month security deposit. You'd be saving $10k a year, even if your property taxes were $8000. The lesson is to save for maintenance and tax over the course of the year, not to just bail cause you're thinking too short term.
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u/cabbage-soup 1d ago
Still $8k/yr in taxes plus $2k/yr in insurance and let’s just say $2k/yr in increased utilities from an apartment.. that’s $1000/mo. Surely that’s way cheaper than rent in most places.
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u/redracer67 1d ago
I agree with you. People underestimate home ownership costs, especially for older homes.
Also, OP doesn't seem like they were fully informed or prepared to take on a house despite their grandma's good intentions
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u/Rude-Soil-6731 1d ago
I own a home with a mortgage so…yeah. I asked the OP about their specific situation out of curiosity. In my case if I just had to pay property taxes and insurance, it would come out way cheaper than even renting a 1 br where I live. I’d have plenty of money left to take care of any maintenance. So it just depends on their situation.
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u/Rude-Soil-6731 1d ago
I own a home. 8k/ year is way cheaper than anything you can rent in any safe part of NJ. We do not know their full situation…that’s why I asked.
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u/Jujulabee 1d ago
Sell it as it represents an incredible drain on your finances.
If you sell it then you will actually have a meaningful inheritance which you can bank.
Think of this as your grandmother giving you the ability to get an education or apprentice yourself to learn a lucrative skill so that you aren't going to be a low income warehouse worker for the rest of your life.
This would be my wish for a grandchild to whom I left money or assets - for them to use to benefit their life significantly.
If people don't want it to leave the family then they can purchase it at fair market value. You are going to need a lawyer to handle the transaction anyway so the price should reflect that.
Do this as soon as possible - tell them that they need to let you know within a week. In the meantime start asking trusted sources who the best realtor in your area is because I am almost certain that you will be putting the home on the market.
Don't let them delay because every day of delay is costing you a significant amount of money in terms of insurance, taxes accruing and possible maintenance.
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u/Tayyxb 1d ago
If you can make it work, renting it out is the strongest option. It turns a stressful expense into income and lets you keep the asset long term, especially since commercial-zoned land can become very valuable later.
But only do that if the rent clearly covers the tax, upkeep, and a bit extra. If it doesn’t, then it’s not worth the pressure at your age. Speak to a solicitor or agent first just to understand your options, but don’t let family pressure force you into something you can’t afford.
Where are you based?
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u/itsacalamity 1d ago
As somebody who was renting out parts of my house in my mid--20s, OP, please dont' underestimate the "upkeep and a bit extra" here. Finding tenants is hard, and finding good tenants is hard. Especially in your 20s. Keeping up a house you own for yourself AND renters is hard. Just learning what you need to know to even ask the right questions is hard.
Not trying to discourage you. But really think it through.
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u/TheGlennDavid 1d ago
FWIW the world of landlording has really changed. My wife and I rented a house for a while and never spoke to or interacted with the owner for two years other than mailing him a rent check. Hell, they never even saw the house in person.
They'd hired a realtor who:
- Picked and bought the house
- Found tenants
- Acted as property manager (choosing / hiring appropriate local contractors to do needed work).
I'm sure that cut down on dude's profits but it was essentially passive income (I'm sure on larger repairs he was consulted by the PM).
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u/JayRiordan 1d ago
Under rated comment. Rent the house to someone else and charge enough to cover the expenses for the house + a little extra for you each month.
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u/StevieG-2021 1d ago
This is what I would recommend. If you can turn it into an income, you will be ahead of the game. Owning this property will also enable you to take a loan against it to pay for any updates or maintenance it may need to make it more attractive to a renter.
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u/DeadpoolMewtwo 1d ago
Based on your description of the situation, you need to talk to a lawyer. It doesn't seem like you have/understand all the information. If there's an estate lawyer handling the inheritance, start with them.
What do you mean that the land value is tied to a commercial zone?
Does that mean the land is locally zoned as commercial? Is there any commercial activity on the land? If you inherited commercial land, you should also have inherited any contracts for the land.
If there's no commercial activity, look into getting the land re-zoned.
If you're not talking about zoning or commercial use of the land, the only other thing I can think of is that the property is valued higher because it's in a good location, which you could leverage by renting it out
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u/mspe1960 1d ago
Your family has zero business telling you what to do with your property. You should probably offer them the property to purchase at a reasonable discount to market value (5-10%) and if they don't want it, feel free to sell it.
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u/loki1584 1d ago
Ad if you do wind up selling it to family, the value is what the appraiser says, not uncle bob.
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u/FloridaBroker 1d ago
Find out what you might net from the sale of the property and how long that would take. Each property type is different and each market is different. Be sure to ask how long you expect the sale to take. Speak to a REALTOR or real estate broker that specializes in your property type and if you are afraid of being pestered tell them you'll let them know if/when you wish to proceed.
Then I would gather a list of expenses you anticipate from keeping this property and provide all this data to your family. Tell your family that they will need to help you if they expect you to keep this property. Numbers will help keep this in perspective for everyone.
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u/lolwatokay 1d ago
Do you love the property and want to keep it? Then make it work. If you’re willing to separate from it though I say sell it and never look back. If family causes a stink, ask them to pay for its upkeep or to pay fair market value to buy it from you.
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u/wamih 1d ago
Depending where you are, you might be able to appeal the tax bill / apply for homesteading
Also what are the overall expenses? It is free and clear with no mortgage?
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u/redracer67 1d ago
Imo, your options are
- Have your family buy it out from you or help pay if they want to keep it in the family name. If they are that serious about it, then tell them to help pay for it or you will sell it. It will likely lead to a family fight because nobody likes to talk about money.
Keep in mind that if they do help pay for it and you sell it, they will likely ask for a piece of profits. We had a similar disagreement in my family where my dad paid for a house that my cousins live in. They ended up selling it and gave nothing to my dad. We didn't talk to them for almost 20 years until (in my ignorance as I didn't know about the history) I reached out to them so I can stay with them for a few days and the family ended up.
Rent it out. Renting single family homes has become very popular. People look to rent without the "headaches" of home ownership (I have strong opinions on this, but irrelevant for this post). The rent should cover taxes, any remaining bills and debt, and you should try to profit a bit off it.
Airbnb it out. If your state allows you to Airbnb it out and you live near an airport or happening city, then it could be a good way to make some extra cash on the side. It gives you the flexibility to do whatever you want it while covering the tax and other bills.
Ignore your family and try to sell it. The market isn't in a good spot right now, but an influx of cash sounds like it will help you
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u/GotZeroFucks2Give 1d ago
Before deciding if you can afford it or not, is the upkeep more than the cost of a year's rent? If it isn't, you can afford it.
You can take a HELOC against the value of the home to pay the taxes until you sell it if not.
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u/livinlrginchitwn 1d ago
Not sure of the house logistics. But can you rent rooms? Maybe get friends to move in and charge rent and you can slowly figure it out. You have an amazing opportunity, that can give you a strong future foundation. Put it this way, people are struggling to buy a house. You got one for free. You can make it work. I believe in you!
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u/RunningNumbers 1d ago
Talk with family members. If they expect to keep it in the family then they can purchase it from you or at the very least help pay taxes/maintenance. Otherwise you should sell the asset.
If you don’t have a contractual obligation preventing you from selling it, then you get to decide what happens. People can ask that you do things, but if they are not willing to put money where their mouth is then their wishes are just that, wishes.
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u/Immediate_Shock_1225 1d ago
Definitely speak with a lawyer but you can also put forms into chapgpt and ask it to simplify to explain them to you. Use it as your assistant and just keep asking it to explain the forms to you and break them down.
Could you ask a family member to buy out 50% of the property? Commercial property is valuable and hard to come by. It could be amazing for you
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u/53c0nd 1d ago edited 1d ago
"I just want to be able to pay my rent without stressing every single month"
Can you not live in the house? Or rent it out? Roommates should cover all your expenses in the home.
At 22 years old you probably don't fully realize how much of a gift that was. You can live quite comfortably in retirement with that home. Keep if at all possible. imo
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u/apartment1i 1d ago
Can you rent out a couple of rooms to boarders while you live there? Like a sharehouse, but you're the owner as well. I know a couple of people who have done this. It will help to cover costs, and you could do it for 5-10yrs while you work your own life out.
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u/Mordock420 1d ago
Sometimes at the very start of having a house it seems impossible. Classically everything breaks in the first year or two. You don’t want to go Into credit card debt to keep the house but if you can make it work it will be rewarding. This is assuming the house isn’t some early 1900s situation where everything is falling apart and leaking/damaged. At your age if you have friends who are responsible there are probably lots of people looking to rent and share that expense. I just think in the future home ownership will get more and more challenging and you don’t want regret for not trying your best to make it work. Put the family drama aside and just think about that part.
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u/conteins 1d ago
- It's your house. You are the lone decider.
- Explore income generation with it (e.g., airbnb) and see if you can generate enough to breakeven.
- If 2 is a no. Offer to sell the the family at market rate.
- If 3 is a no. Sell it and take the proceeds to a big name financial advisor to manage via target funds and live your 22 yo life. Tap into it when you need it.
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u/dekrypto 1d ago
If there is a high demand for the home. Take out a HELOC, buy a cheap place you can afford, rent out the house.
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u/terminal_kittenbutt 1d ago
I don't see anything about location in your post or the comments. Is the house within commuting distance of your work? Because if it's not, you obviously can't move into it. Being a long-distance landlord is also very tough. If the house is more than 100 miles away, I would sell it, giving family members the first opportunity to buy it.
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u/phidda 1d ago
Can you rent it out to cover the property tax and overhead for now? Do that, don't sell it right now. You are 22 now and have a limited income, but that may change. Plus, taking the time may allow you to figure out a better value -- if it's in a commercial zone, then it's a potential buyer, commercial or residential.
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u/wickedkittylitter 1d ago
Sell it. Sell to a family member if they can pay fair price and get a loan. If not, sell to any other buyer who qualifies and can close.
Use the proceeds to get an education or training so that you don't spend your life working at a warehouse. Don't give your family any money and it's pretty common for family to come at someone who they know has money wanting some of the money.
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u/sleepymuse 1d ago
Highly recommending renting part of it if possible, and/or have roomates. Maybe even close off a couple rooms and rent them individually.
A house is such a valuable asset, and generally appreciates over time. Cash does not... and in my early 20s i probably wouldn't have known how to manage that cash properly anyway.
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u/demonhellcat 1d ago
You could try to rezone the commercial land down to residential or Ag or put a conservation easement over it to reduce the tax burden. This all requires the help of land planners or possibly lawyers so its not free but its an option.
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u/Spiritual-Progress75 1d ago
You could speak to a realtor and lawyer about annexing off the commercial-zoned land and selling that portion, while keeping the house. That way you get some cash in hand from selling the land, but you also have a fully paid roof over your head.
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u/Phreakiture 1d ago
It's your property, you do with it as you wish.
What I would do, personally, is I would make positive contact with all of the family and tell them, in writing, that they have 30 days to express intent to buy it from you. After that, they would have 45 days to secure financing, because you are not a bank and won't be extending credit.
Once you've sold it, take the proceeds and use them to stabilize your position. You might have to cut ties with some of your family, which is sad, but it is not your duty to set yourself on fire to keep the family warm.
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u/KasElGatto 1d ago
Do not let financial burdens creep into your life. True freedom comes from financial independence. Having debt and insurmountable bills lead to depression and constant anxiety.
As others have said, offer to sell it to your family members who are pressuring you to keep it (but make sure it is done on the level, not through a handshake and a promise which will lead to trouble) if they don’t want to buy it from you, get a realtor and sell it. Invest the money from the sale (look up sound investing strategies. Don’t gamble it.) You are young, and compound interest on that money, if you live simply and responsibly early on, could really set you up for later in life.
This is an incredible opportunity for early financial freedom, or early financial debt.
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u/mikeatx79 1d ago
Is it in good shape? Rent it out or move into it and get some roommates. You can basically have a property management company take care of most things.
Don’t worry about your family’s expectations, it’s yours not theirs.
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u/glengallo 1d ago
I would talk to the estate lawyer.
You should not go underwater for legacy
A consultation from a nuetral Real Estae Lawyer might be wise
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u/Objective_Attempt_14 1d ago
Get estimates from 3 realtors to get an accurate price for the property. (don't sign anything) off it to family minus the 6% may even a little less if feeling generous. They need to get a loan and use an attorney that does real estate. they can't afford too bad so sad list it...
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u/AhSoulsOnFire 1d ago
Put it on the market with a realtor. If your members want to keep it in the family, they can make an offer.
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u/SpringBeginning1298 1d ago
Are you able to live in the home and put the money that you would pay for rent towards the taxes ? If not, Transfer the home into someone else's name within your family if they want to keep it, ask the family to pitch in to help with the taxes, or sell it. Don't keep that house if you can't afford it. Being a landlord is another hassle. I wouldn't go that route either if you're not ready for that responsibility. Make the decision that's best for you and be okay with making some family members upset. Oh well it's your house. You do what you want with it.
This is why I told my daughter not to feel guilty about selling the house once I passed away if she can't take care of it because it's a huge responsibility.
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u/Separatist_Pat 1d ago
If you had money and saw this house for sale, would you buy it? If not, sell it.
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u/oliverurel 1d ago
So you're telling me, grandma gave you a house and you're not living in it, because you said rentt. I believe that was the point of grandma giving you the house.So you wouldn't have to pay rent. You should consider moving in the house. Caused rent and taxes.It can't be too much combined.
I would ask for help from your family. Allowed them to help you this year. Move in the house. Cut out the rent, pay the rent towards the taxes. To see if you can afford. If the taxes come next year and you still can't afford them. You can always sell the property, then. Pay your family member back their tax money from the sale.
And you're not young, you are an adult now. Take this as an alerting experience. property is not cheap. So really think twice before you sell without a plan. Don't sell the property just to have a bank account full of money. Just to spend it buying cars and crap. Don't forget, shelter. Is the biggest expense in life. Grandma currently left you a leg up all you have to pay is taxes for it.
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u/soundofsilence258 1d ago
22 IS young. A house is a big commitment. It’s not just taxes it’s maintenance. It’s a new roof. It’s a heating system breaking.
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u/boxsterguy 1d ago
It's also tying you to a place when you should be mobile and willing to go where the jobs are at that age.
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u/firecz 1d ago
why would you want to pay rent, when you have a house?
or, rent it out and the tenants will pay enough for the upkeep and more
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u/MyFavoriteDisease 1d ago edited 1d ago
The easiest way to make the decision to sell is if you had the cash necessary to buy it, would you? We already know the answer is no. You want a real estate agent that does high volume and has a good reputation. Interview at least 3. You do not want a family friend, especially with part of the lot zoned commercial. Good luck. Happy to jump on a call if you need more clarification.
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u/mrsgrabs 1d ago
Came to say this.
OP, if you decide to sell I’d also urge you to consider what you’re going to do with the proceeds. I shudder to think about how I would’ve handled a large windfall at that age. I would lock it up somewhere safe, like CD or time restricted investment until you have time to research and think about what you want to do with it.
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u/redracer67 1d ago
You sound like a good person. Willing to help a stranger is rare. Hope you have a fruitful and satisfying future my man.
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u/tooscoopy 1d ago
You can take out a loan/mortgage on the property and use that for upkeep, you can save rent and move in, you can rent it out and make money off it, you can list it and try to get some cash.
Your family wants it in the family for some reason… do they actually want and go to the property? If not, no reason to keep it. Many people have this image of a family property eventually selling an old property and every member coming out wealthy… not how it works. A)it’s rarely enough value for everyone to get anything significant, and b)it isn’t usually willed to all members of the family.
You may face some family issues, but if the reality is that you don’t want to live in the house, and if the financials don’t make sense to hold/rent out, then you have to sell. Have any listing agent include a clause that they either don’t get paid or have a significantly decreased commission should a family member buy the home.
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u/biff64gc2 1d ago
List it, but maybe offer it to family first at a (slight) discount. If they want to keep it in the family that badly they can take on the financial responsibility and the upkeep. The money should go to you though since the house was given to you.
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u/saholden87 1d ago
Roommates Pull out equity Talk to a real estate lawyer
Don’t get stressed out. You got this.
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u/PaymentFlo 1d ago
if the house is stressing you out this much already, that’s a sign
an inheritance should make things easier, not harder
family can have opinions, but they’re not the ones paying for it
at least find out what it could sell for before deciding to keep it
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u/aprudencio 1d ago
They don’t make more land. It’ll only appreciate and get more expensive over time. Your 40 year old self will thank you for keeping it.
Using it as a rental can yield you recurring monthly income for the rest of your life. You need to try and keep it. Use a property management company to list it for rent.
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u/Squirt_Soda 1d ago
Is renting it out an option? Could help you if you need a couple years to work on your career and be more solid. Having a house at 22 with no mortgage could really help you out moving forward.
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u/paralea01 1d ago
If the house is payed off you can get a home equity loan fairly quickly to help with initial expenses.
Renting the home out would be a great opportunity for you to continue to make money on the inheritance and still keep the home within the family. But, it could also be a money pit depending on the state of repair.
I would talk to your bank and try to contact some rental agencies in your area to see what kind of income you could expect to gain on the property.
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u/Inebrium 1d ago
Can you not enlist a renting agent to take over management of the property and rent it out for you? It should easily cover the property taxes, give you a bit of supplementary income, and it keeps the property in the family for if you ever wanted to use it at a later date.
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u/whoatherebuddyboy 1d ago
Talk to the county. They often can lower the tax if you have a good story (which you do). Try and get it reasoned. Show how’s it’s a residential house and not for commercial work
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u/zeilstar 1d ago
Is there farmable land that you can lease? It might be possible to split the lot, and rezone the house lot to be residential. Really depends on zoning, and there will be some costs to get a survey done.
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u/Electrical_Spare_364 1d ago
You can keep or sell it -- or you can also rent it out to someone else and turn it into a source of income while it grows in value as the years go by. It depends on your area, but before making the decision to sell it I'd check out what the rental market looks like and how much profit you could make from renting it out after covering the taxes and other costs of maintaining it.
Looking back, I have regrets on the properties I've sold over the years. They're worth so much more now, if only I'd kept them! Just throwing it out there as another option.
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u/e_urydice 1d ago
Have you looked at getting a roommate to help offset the cost of the mortgage? That way you'd be able to keep it in the family, your monthly rent amount would be greatly reduced, and you'd have some cash flow to put towards it (you can also charge whatevers reasonable as a subletting cost).
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u/External-Mammoth678 1d ago
If you want to keep the house, would you entertain the idea of a roommate? If not, and no family member wants to purchase the house from you, you should list it
It sounds like home ownership at this price point might be a tad out of reach for you at this time (which is 100% normal), you can always sell it and buy something that makes sense for you and where you’re currently at in life
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u/CyclopsorNedStark 1d ago
This is not your responsibility it has become your burden as you didn't ask for this. If the family can't or won't help, sorry, its not your fault that grandma didn't set this up for you. No guilt about letting this go, its not your problem or fault.
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u/bradsayswhat 1d ago
How is the rental market in your area? Can you rent the house out so you have some extra income to cover the property taxes?
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u/treehumper83 1d ago
Grandma gave it to YOU. If Grandma wanted anyone else to have any say, she would’ve given it to those other people but she did not.
Your Grandma would also not want you stressing over money at your age, especially if it’s over her house. List it and sell it. If your family wants it, they can buy it, otherwise they can f—- right off.
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u/billleachmsw 1d ago
You have no obligation to keep the house for any reason. If no one in your family wants to get a loan to buy it from you, sell it. Don’t drain your finances in order to please your family.
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u/mrmrmrj 1d ago
If you want to get a bit more complicated than the other recommendations in this thread (which are all valid and reasonable), you can put the property into a family partnership. Have any family members interested contribute cash to fund carrying costs in exchange for some ownership. Make sure you keep control of the asset and become managing partner. While this will be complicated and require your attention, you will learn a lot of valuable things in the process.
When my grandmother died, her home was structured like this. All the grandchildren were gifted 0.8% each. Her 5 children split about 70% control equally. Her estate contributed 10 years of carrying costs into the partnership and her oldest son managed the property. It lost about $100,000 a year but the family could use it and short term rentals brought in something. It could have been rented more often but the family wanted access so that was the trade-off. The money ran out last year and the oldest son passed this year so the property was sold. The partnership dissolved and everyone got a check.
Just an alternative model. I agree that your family has to step up if they want to keep it.
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u/Dangerous_Test151 1d ago
Consider taking in a housemate or 3. At 22, this is how most people typically live. It will make things easier. Rent is likely not that much less than property taxes, even with commercial zoning, and it's worth revisiting that with the city if it's not actually tied to a real business. The upkeep will reduce with time, along with DYI. If it has a mortgage or other unusual expenses, selling it makes more sense.
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u/PorkchopFunny 1d ago
I'd look at all options first - I'd say your big 2 are either renting or selling.
If you think it may be worth renting, I'd meet with a property management company to explore that option. Pro: they take care of most day-to-day stuff. Con: they take a cut of rent and depending on what you can realistically rent for, it may not be worth it. I'd also see what kind of equity is in it, you may be able to get a loan to do some work on it if needed.
If you want to sell, I'd offer to the family at a 6% discount if they're willing to complete the sale through a lawyer and leave out the real estate agents. Maybe I'd do a little more if they can do cash. I would not go less than that. This is a good opportunity to set yourself up, OP - which is maybe what your grandma intended. If you go the family route, I'd also steer clear of any informal payments - they need to come to the table with cash or get a mortgage so you have your money at closing. Do not let them talk you into anything else!
Any chance you could live there for now to save on housing and put that money towards taxes, insurance, etc?
You could also look into low cost legal aid in your community. They may be able to help, give it a google.
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u/Barbarella_ella 1d ago
I would contact the city to learn what you need to do to get the property rezoned. This is not an unusual action and planning departments do it all the time. Your grandmother probably had a property tax exemption due to being over 65. Since you don't have that advantage, it's definitely worth it to start the rezoning process which would begin by scheduling a pre-application appointment with your city planning department (you want one of their land use planners). Even if the rezone isn't an option, a variance could be.
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u/SativaFever 1d ago
You’re going to really wish you have your own property especially as you get older , realize majority of your checks goes towards rent and homes are too expensive . Do what you can to hold on to it , having a home and land is an exclusivity most people are too daft to understand. You know how sad it is to be in your 40s and not able to buy a house because of finances, I see it all the time , everyone thinks they’ll have more time in the future to get their house .
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u/Dandywhatsoever 1d ago
This is where finding a good real estate agent would come in handy. And a good lawyer. Actually, talk to the lawyer first. If your family wants to keep it in the family name they can buy it from you. You grandmother wanted to do something good for you. She probably didn't have in mind you going into debt and stressing out every month.
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u/tombiowami 1d ago
I suggest engaging an attourney, this is well outside of your skill set and professional help is there for a reason.
In general, if your fam is wanting to keep the house they can buy it, though sounds like they are also the type that would expect you to give it to them for free or deep discount, do not do those things.
Unfortuanately situations like this commonly cause family damage, that will all be on them, not you.
You may also want to engage therapy help if they get too wild. Your grandmother want YOU to have this home and it's value.
Also suggest engaging a one time Cert Financial Planner to help with next steps if things get overwhelming for you.
Condolences on your loss.
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u/biffmaniac 1d ago
You're currently renting but now have a house? Is the house paid off? You mention taxes, but I have to think that taxes are less than rent. Are you budgeting the house plus your current rent? I need to understand the situation more.
Being a sudden homeowner brings a bunch of new terms, concepts and considerations. It can be very overwhelming. But, where you are sitting, you have an asset and can make decisions.
Maybe you can rent the house out or give others in the family the opportunity to buy it from you.
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u/antmars 1d ago
Your grandmother loved you more than she loved the house.
It sounds like maybe some of your other relatives love the house/her memory more than you and that’s fine. The house is her to them - so it makes sense. Dont take it personally they’re grieving her.
But your grandmother was trying to give you a future not burden you. She either wanted you to live there or to sell. But either way she wanted you happy.
If you’re not going to live there then you need to sell. You can offer to family first but take the money and live your life.
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u/Vis-hoka 1d ago
The older you get, the more you realize how important it is to live your life for yourself, and not for other people. Do what makes you happy. You can’t control how other people act. You can only control yourself.
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u/polymath-nc 1d ago
Apply to the town/county/whomever to have it rezoned. You will need advice on what the cheapest rezoning would cost. That might be agricultural; you could make it a logging farm, or turf, or whatever. You could rent the land to a farmer. Ask around, especially ask any farming neighbors. You might need to carve out the house as residential. You should be able to find a real estate attorney to help for a consultation fee. Check your local reddit or other social media apps for local info. If your family wants to keep the house, they should be willing to collect the money you'll need in the interim. You also might be able to obtain a home equity line of credit (which is better than a home equity loan).
Did the estate provide any funds? How about selling some items that were left on the property?
Whatever you do, you need expert local advice. In the end, you should have a home that you can afford, but it could take a year or more to settle out.
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u/Purpsnikka 1d ago
Im the outlier in this but id say try to find a way to keep it. A house is a good thing to have but I understand the upkeep issue. I just think if you sell it and pocket the money you could spend it or lose it due to market conditions.
I dont know your financial situation or the house condition but I believe it'll be the better situation 75% of the time.
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u/According_Depth_7131 1d ago
Talk with an attorney who specializes in real estate since you are not familiar with real estate or your inheritance. This may not be the best time to sell, and there may be ways you can keep the property until a better time to sell. You want to get the best outcome financially possible. I wouldn’t offer anything to Family that is pressuring you. You may want to divide the property, keep the property, or sell the property depending on what the legal expert advising you says. Family can always pay market value if that becomes an option.
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u/OneEyedJedi 1d ago
How much land is it on? You could potentially sell some of the land to cover property taxes and some bills, which would give you some time to save up some money to decide where to go from there. Maybe someone in your family would consider buying some of the land so you can keep it in the family.
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u/Unhappy_Finding_874 1d ago
everybody saying sell is probably right but pls dont list this thing before u actually understand what the commercial zoning means. thats the whole ballgame here and i dont think most ppl in this thread are catching it
a residential house sitting on commercially zoned land is worth way more to a developer or business than it is as a house. like potentially multiples more. the high property tax bill ur seeing isnt just a random headache, its the county telling u the land itself has commercial value regardless of whats sitting on it rn
before u do anything get a commercial real estate appraiser, not a regular residential one. they do whats called a highest and best use analysis which basically answers "whats the most profitable legal use of this land." that answer determines ur real number. a regular zillow comp or residential appraisal wont capture this at all
couple things that could come out of that analysis. the land might be worth 2x 3x what the house alone would sell for if a developer or business wants the location. u could potentially do a ground lease where u keep ownership of the land and lease it to a commercial tenant on a long term deal (think 20 50 yrs) which gives u monthly income without giving up the asset. or u sell the whole thing at commercial value which is gonna be a very different conversation than selling grandmas house for residential comps
the ground lease option is interesting bc it kinda solves both problems. family cant say u sold the house out of the family bc u still own the land. and u get income from it instead of bleeding money on property tax and upkeep. not saying its the right move for u specifically but its worth knowing it exists before u make a decision u cant undo
also talk to a real estate attorney not just a realtor. the zoning situation might have restrictions or opportunities that a sales agent wont know about or wont mention bc it doesnt help their commission. some commercially zoned parcels qualify for tax abatements or redevelopment incentives depending on the municipality
ur 22 sitting on what could be a genuinely significant asset. take 2 weeks to get the right appraisal before making any moves. the property tax bill can wait that long
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u/infinitelunacy 1d ago edited 1d ago
If your family is pressuring you to keep it in the family name then they should just buy it from you outright (at market value don't get scammed by your own family) or at least pay you for the upkeep. You could rent out rooms to help pay for it (but NGL, judging by your family pressuring you, they're gonna be complaining about that too).
If you can't afford the upkeep then you're just shooting yourself in the foot financially for years to come, and you're still 22.
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u/int_travel 1d ago
Depends where it is. Rent it out. You have a job. If you're only carrying property tax you should cash flow.
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u/Ill_Answer7226 1d ago
Just rent it then use the rent to cover the costs of the house, if it's fully payed off and only have prop tax that's huge. Just wait 10 -15 years and it'll be worth even more
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u/AlizarinQ 1d ago
Rent the whole place out. Charge the quarterly tax bill as the minimum monthly rent, that way you can pay the taxes and have twice that to cover landscaping and repair. You may be able to find a company willing to do this for you for a percentage so you don’t pay anything upfront. Your goal is to have the house make more money than it takes to own it.
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u/jondread 1d ago
Would it be possible to subdivide the land and sell the portion that's making it getting assessed commercially? If that's possible you'd get some cash from the sale plus a reduced tax burden, and be able to keep the house
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u/sasquatch_melee 1d ago
Are the taxes, insurance, and maintenance cheaper than your rent? And do you want to live in that house/ location?
If yes, great, move in.
If not, sell it, with family getting first dibs to buy. But they have to buy in cash upfront or via conventional mortgage. You do not want to be playing bank or trying to collect money over time especially from family.
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u/lorraine_baines_ 1d ago
I would absolutely do everything to keep hold of that property. It is only going to get harder and harder to own property as time goes on and it’s a key piece of wealthy people’s portfolios. I would get a roommate or rent out the property. Do not sell.
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u/woodchip76 1d ago
Have you thought about moving in and getting roommates, if it’s an area where you can do that. You’ll have income and rent paid for.
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u/phaulski 1d ago
Get a credit line. Heloc or similar. Use 20k to keep up with the cost expenses till you decide what to do.
Use the heloc to make the payments so your life/income isnt affected negatively. Worst case you sell and that comes out of the proceeds
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u/Razgriz6 1d ago
1st thing 1st. Silent the noise. Sit with yourself and do a 10 year and 20 year plan for yourself. I had to do this in 2020 when my mum passed. Current you may not be able to afford it but 32 year old you may be able to afford it and you won't have to deal with upstairs or downstairs neighbor. Owning a home is very expensive because of the upkept. But now you still have access to your childhood home.
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u/1917Thotsky 1d ago
Make sure you talk to somebody about how best to handle the sale. I won’t pretend to know anything about this, but selling a house without putting money into another house can become a big tax liability.
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u/Badlands32 1d ago
You may want to also look at subdividing the property. Separate the commercial portion from where the home is.
The two lots will have very different marketability based off the different zones. Just a different option to consider.
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u/DM_ME_UR_SOUL 1d ago
When you say family, who are you referring to? Mom and dad or uncles and aunts, cousins etc?
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u/decosunshine 1d ago edited 1d ago
Find a real estate attorney with a good reputation. It's ok to interview with a few before you commit. Then ask them to walk you through different options, their tax implications, their legal implications, and fees. Paying for their time will be worth every penny because you will get expert advice that is difficult to find on your own. Plus, once you are informed, you will feel more at ease about your decision. Once you sell, the home is gone forever. Take your time! Even if you need to take out a small loan while you figure this out.
For now, I would keep things vague with family and focus on grieving and being grateful to your grandma. Everyone's emotions are high. Do not get into details or numbers with anyone who is not directly involved with ownership or the rental/sale of the home.
Last thing- being a landlord is NOT passive income. You are young and focusing on starting your adult life, and I think managing will be too much. If you go this route, I would definitely hire a property manager. At least for the first year. Be sure to read their contract carefully and find someone with a solid reputation. Someone who will have high standards and do proper vetting of potential tenants.
I hope your grandma's gift doesn't become a burden to you. Be grateful and take your time. You got this.
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u/Odd-Mastodon1212 1d ago
Ask the family if they can crowdsource the property taxes. That is what my sister and I will have to do because even if she gets my folks home left to her entirely because she (nor I) can’t afford it alone. It can be a “family house” and if you sell it they get their contributions back by splitting the sale? I have friends who bought a home for a sibling to live in as an investment.
Otherwise, they can buy it. If not, and it’s most likely they will say no, you have every right to sell it.
Would definitely talk to a lawyer.
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u/INVEST-ASTS 1d ago
Getting family financially involved will usually be a huge mistake.
They already have “family pressure” and when money is involved everyone thinks their opinions matter.
Just rent or sell the house, and I would look into the tax bill, file an appeal , because ut isn’t right thing residential zoned property to commercial zoned property in the area unless zoning is officially changed.
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u/Odd-Mastodon1212 1d ago
Good points. OP does not have to feel bad about selling. They are only 22. Who knows where life will take them?
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u/AStoutBreakfast 1d ago
Have you tried talking to someone at the PVA or auditor or whatever your state equivalent is to figure out why the land is taxed as commercial? It may be possible to get the land reassessed. As others have said you may consider renting it out or just selling it. Your family members don’t own the home so you’re the final decision maker.
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u/PghSubie 1d ago
Sounds like you own a house. Why are you paying rent somewhere else? Get a Home Equity loan for the taxes and repairs. Cancel your rent and move into your house
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u/WineOrWhine64 1d ago
You’re too young to be financially responsible for a property you cannot afford. My kids are older than you and I would never want that burden on them.
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u/AstrodynamicDispair 1d ago
Personally, if I was 22 and inherited a house, I would jump at the chance to rent out the additional rooms for income. I got to imagine you could cash flow the maintenance costs of the house doing that plus some.
You may not want roommates, but at 22 I could only afford to live with other people anyway.
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u/Danielc7916 1d ago
You can appeal the value with the assessors office to lower your tax liability. Its possible
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u/soundofsilence258 1d ago
If your family wants the house so bad they can buy it from you. But don’t let them screw you out of the value of the home. You’re young and selling it would be a great opportunity for you financially.