Long story short – my aunt passed last year and left me her duplex in a Midwest city I've never even visited. I thought – free rental income but its been nothing but headaches.
The tenants are still there month to month but one is consistently late on rent and the other just stopped paying altogether. Eviction in that county takes like 4-6 months from what I've read. Meanwhile I'm covering two mortgages (my own place plus this duplex) plus utilities for the unit thats not paying. Its eating up about $900 a month from my savings.
I live on the west coast. Flying out to deal with showings, repairs, court dates – not realistic with my job and two kids.
I've looked into property management companies but they want 8-10% plus fees for evictions and maintenance. And honestly? I just want out. This "inheritance" feels like a curse.
So heres what I'm trying to figure out – wholesale it. Find an investor who'll take it as-is with the tenants. Quick close, no repairs, no evictions. But I know wholesalers take a cut and I might leave money on the table. Option 2 – List with a local agent. But the house needs work (roof is 20+ years, HVAC is old, one unit has water damage) and I can't afford to fix it from here. Selling as-is on MLS might take months and I'd still have to deal with showings and lowball offers.
Has anyone here dealt with a remote inherited rental that went sideways? What did you do – wholesale, cash buyer, or just suck it up and hire a PM? Any advice on which route gets me out fastest without losing my shirt? Also if you've used a cash buyer for a tenant-occupied place, how did the transition work? Did they handle the eviction or was that on you?
Seriously any help appreciated. I'm tired of watching my savings drain for a property I never wanted.
Inherited a tenant-occupied property 3 states away and I'm bleeding cash. Wholesale or hold?
byu/Internal-Remove7223 inRealEstate
Posted by Internal-Remove7223
3 Comments
welcome to land lording. When it is easy, it is easy. When it isn’t, you need a lot more time, money, persistence, and patience than you can imagine. It is VERY hard to do this remote with another job and family.
Sounds to me like you should sell. This isn’t a one off, it is a repeat challenge. And yes, you will sell “under value” given the issues, but it is all a windfall anyway. Ask a few realtors if they have investors or consider cash for keys to get the tenants out, and then sell as-is with a realtor. Price it low to sell fast.
If you would inherited the cash value of the liquidated property would you have bought this property?
They’re lucky all the utilities are in good working order to make them comfortable.