I Inherited a House, What To Do? – Should I Rent or Sell in Connecticut?

First, we’re truly sorry for your loss. This is a difficult time for many reasons, and having to deal with property decisions on top of everything else can feel overwhelming—even under the best circumstances.

It’s completely normal to feel unsure about what to do next. You may be asking yourself, “I inherited a house—what should I do with it?” Should you keep it and rent it out? Should you sell it? And if you do sell, what’s the best way to go about it?

These are important questions, and there’s no one-size-fits-all answer. The right choice depends on your situation, your goals, and what feels manageable for you right now.

Tons of options open for you, but…

… we can help.

We’re seasoned real estate investors here in Connecticut, and we’re actively looking to buy several homes each month in the local area. On a regular basis, we speak with people who’ve inherited a house and are trying to figure out the best way to sell it.
Because we see these situations so often, we’ve put together the information below to help you better understand the process and navigate it with more clarity and confidence.

I Inherited A House, What To Do Next?

Here are a few key considerations to keep in mind as you decide the best path forward:

1) Make sure the mortgage is paid.

This may seem obvious, but it’s an important point that often catches people off guard. If the person who left you the property still had a mortgage—unless the house was fully paid off—you’re responsible for that loan if you plan to keep the home.

Some lenders will allow you to assume the existing mortgage, while others may require you to refinance the property into a new loan in your own name. If refinancing isn’t an option because you don’t qualify for a new loan, holding onto the property or renting it out may not be realistic. Understanding the mortgage situation early can help you decide whether keeping the house makes sense or whether selling might be the better path forward.

2) The investment is only as good as the manager.

If dealing with brokers, maintenance, tenants, rent collection, and all the day-to-day details of property management doesn’t sound like a good use of your time, you have options. You can hire a professional property manager to handle it for you, or you can decide to cash out now and simplify things.

Some people who inherit homes choose to keep the property and rent it out for additional income—and that can be a solid strategy. You just need to be realistic about what comes with it. Managing a rental means handling repairs, tenant issues, vacancies, and all the little surprises that tend to show up at the worst times. If you’re prepared for the responsibilities (and the occasional “tenant and toilet” problem), renting may make sense. If not, selling can be the cleaner, less stressful path forward.

3) Property ownership costs money.

It’s uncommon to come across a house that’s been perfectly maintained over the years. In reality, most inherited homes need at least some repairs—and many require significant updates or deferred maintenance to be addressed.

One smart step is to hire a professional property inspector. A thorough inspection can give you a clear picture of what repairs or improvements may be needed over the next few years, along with rough cost estimates. Having that information upfront helps you avoid unpleasant surprises, which can quickly become very expensive if they catch you off guard.

4) Selling a property for top dollar costs money.

If you don’t want to deal with making repairs, updating kitchens, improving landscaping, or handling the overall cleanup, don’t worry. We buy Connecticut houses for cash, as-is.

5) If the market will continue to grow faster than your other options, hang on to the investment.

We can help you weigh the value of your property today against the potential long-term benefits of renting it out. If you’re able to use the equity in your home for another opportunity that outperforms the local real estate market, that may be the smarter move. On the other hand, if you don’t have a better use for the capital and the neighborhood is appreciating, holding onto the property can make sense. Real estate can be a strong investment – especially when you understand how to read the market and position yourself correctly.

6) Uncle Sam wants a piece of the action.

Before taking any action, be sure to discuss your inherited property with qualified tax and legal professionals. Inheritance decisions can carry significant property and income tax consequences, and those costs can greatly affect the true value – and long-term expense – of owning or selling the investment.

7) Consider all your options.

In certain situations, we may be able to help you set up a lease-option arrangement—one that lets you rent the property while also working toward a future sale. This can be a way to combine steady income now with an exit strategy later, giving you the best of both worlds.

These types of agreements do come with added complexity, and the details matter. But with our local Connecticut real estate investment experience, we can help you understand whether this strategy makes sense for your situation and guide you through it the right way.

8) Compare a few scenarios.

We’ll help you evaluate pricing for any property near Connecticut from every angle—what it’s worth if you sell it today as is, the highest price the market is likely to support after improvements, and the projected value of keeping it as a rental, including the associated costs. That way, you can compare your options clearly and choose the path that makes the most sense for you.