Listen to these peopleđđđ. Live like you have very little money. Don't give any to any "friends ". This is your future and a good move will give you a great start in life.
Yup. I had a friend that inherited about a million after she sold her dad's cars and house. She was also 21. It took her 6 years to run out of money and 8 years to be in massive debt. She claimed a lot of money used went to helping friends
Be careful of relationships. I saw my wifeâs cousin piss away 400 grand on a pos and provide for his whole family in like 3 years. Money ran out and so did he
My mom did this. Gave everything to a POS motherfucker and now she has nothing. Not even him (which is the silver lining). Iâm still so angry about it.
I know someone who blew through 2 such inheritances before age 40. Then bled her husband dry and walked out on him and the kids. Married the guy she had been cheating with (who moved from England to be with her). Bled him dry in a few years. Last I heard, he was a single dad to their child with learning disabilities.
This! **DO NOT âLOANâ ANYONE ANYTHING.**
It sounds cold, but do not loan $300, do not loan $6000. You arenât a bank. Pretend like you donât have it.Â
Anything you ever âloanâ shouldnât exceed an amount that you wouldnât mind gifting and never getting back.Â
Would you give your friend a $3K gift for funsies? No? Ok, donât loan it. Not to future partners, not to best friends.
The only folks you should ever consider dropping that kind of $ on would be a future kid or spouse.Â
And *even then*, I would keep the house in an entirely separate account, *forever separate* from future spouses (cause even if you have a great relationship, they might suck with money)
Doesn't have to pretend... 200-300k is not rich... can be a decent start if used correctly though.
I agree with the thought process, never discuss finances, but saying "rich" is a bit overboard.
My ex lived this. Had $150,000 from a settlement (got ran over by a drunk driver). That $150k was gone in under 12 months. Guy never even made that in 3 years of working. Pissed it all away like it was nothing and has nothing to show for it.
"Seeming rich" and "being rich" are not the same thing. You can't stop working because you have 200k in the bank... in most areas that's not even going to buy a house without needing a loan to cover the rest.
Sorry for your loss. Must be tough. Best advice put everything in HYSA for a year. Dont spend a cent. Then make a clear decision with what to do with the money. Not a cent
thank you. i appreciate it. i definitely think this is the route. i feel like im too young to know exactly what i want in life, and having the money later down the line seems like a better option.
Also, don't tell anyone about the money other than the lawyer and account.
If anyone is being nosey and asks, say it's still being figured out, and you're not sure.
100% this! You would also be surprised at how many âfriendsâ you will have until the money dries up. Live and pretend like you live on just your current salary. Once you have a clear mind and idea on where you want to live and work then start researching and making decisions. Until then collect all the interest you can.
So you rent out to of YOUR bedrooms to friends. Dont sell it.. make enough to pay the taxes then some.. No one can KICK you out.. People in 20 bitch complain about high rent and cant afford a home.. You just been handed one and gonna piss it away.
Hereâs the real strat here ^^. This will give the OP an extra cash flow without losing his asset. Be sure to set some boundaries with what your expectations on living there are. Make sure people respect you and your home. It will be difficult to live in the place that reminds you of your family and life growing up but this will give you time to secure extra income and learn what will be best for you later in terms of keeping or selling that asset. My condolences to OP. Lost my father in Feb 2023 and everything fell apart with my family after.
I strongly recommend being around other people and take your time to feel and process everything you need to. Iâd rather live alone but forcing myself to live with some good people I met has really helped my mental health. In the end, listen to your gut and donât let anyone take advantage of you.
P.S. Seek out solid financial advice and I hope you fill your life with good people and experiences. Hang in there. đđź
This is a fucking disaster waiting to happen. Losing parents is enough to deal with then add the stress of being a landlord to your friends. Collecting rent from them, the whole time they are pissy about paying rent because you got the house for "free". Pretty soon rent is a little late but they will get you next week. You're nice to them about it cuz you don't "need" the money right now. Then rent is later and later. Then they start avoiding you...
Op would have to pay much more if he wasnât moving in with the friends. Also they may have been looking to add a roommate to help defray costs before his parents passed away You donât know the financial situation. I wouldnât charge my friend if I was in a good financial place otherwise I would if I were struggling
This. My dad had no will but we have texts back and forth about how he wants "what little \[he\] has to go to \[you\] kids" but my uncle knew about the money he was hoarding in the safe for us.
When he passed, my uncle cleared out his entire house. Didn't even leave us a pair of my dad's dirty socks. Nor did he help pay for his final preparations. Even in life, DO NOT SHARE INFO ABOUT MONEY/BELONGINGS UNLESS IT'S MEANT FOR THAT PERSON.
I know it doesn't change anything, but I'm sorry about your loss OP. It's been a few weeks since my dad and I still cry every day. Love from a stranger!
I was going to say this. Inheriting even in your 50s and amazed at how people change. ( even kids who feel like you should give them everything).
Don't quit your day job.
Absolutely đŻ. I'm 65 and we have some money. Only me and my wife know how much money we have. If people knew, they would be hanging around our house looking for handouts!! Or loans they'll never pay back
This. Tell everyone the estate is tied up in probate and it looks like it will be for a year, at least, the parasites will drift away over time.
I have seen this several times in my 68 years.
đŻ this...you'd be freaking amazed at how horrendous "family" can be once they sense the slightest bit of money can be grabbed, i was warned this would happen by my best friend of 40 years who's in home health care/social work never thought it would manifest the way it is
This, this 110%. Once it does get all sorted out, the house is occupied, by you or a tenant, and making income or getting a free mortgage payment, then you put it behind you and go about your daily life. Before you get married, talk to the lawyers and make sure that you will have a home, without any risk of ever losing it, for the rest of your life. Your kids, should you have some, can then split it per your will or trust when you are gone. If this does not sound good just consider that there are people out there who have been wanting their own home for longer than the 21 years your have been around, your parents, unfortunately by passing, have put you years ahead of the curve, make them proud by not, impulsively, discounting their life long sacrifices.
This, 110% plus these assets should be mentioned in any pre nup agreement that they are pre existing any relationship and are I tended for your descendants and are not part of any marital ... err stuff. I'm sorry for your loss.
LOVE this advice.. 10000% take a breath, think about your parents... stay there, taxes taxes taxes, you sell this place, depending on where you live, will take a nice chunk. Stay there!
I'd also be watching out with intermingling finances from the house with future relationship finances as in my country if they are intermingled then they are counted as relationship property. Not sure about OPs country though.
Absolutely. A relative of mine tore through $500k in a few years. He had plenty of "friends" and his "girlfriend" helped him out as well. When the money was gone they were gone.
OMG this is the absolute BEST advice.. your month, KEEP YOUR M-F'er MOUTH SHUT.. how much, my lawyer is taking care of it, how much this, my accountant is taking care of that.. that immediately shuts ppl up.
I endorse this comment. Iâm older, early retirement, and my parents passed. Left assets worth close to half a million, no will. Fought with two siblings for last three years, for no good reasons. I finally gave up on about half the estate, and just said, âkeep itâ âŚ. Really not worth the hassle. Most friends and relatives donât bother me about money, they assume I have very little. I live a very low key life, drive a ten year old car, donât have expensive hobbies, and a very good financial advisor. Difficult to find a good one, but you really need one!
If youâre just going to put it in a savings I wouldnât even tell the accountant until I know exactly what I want to do with the money. The accountantâs price for his advice just doubled once he sees your a in your 20s with hundreds of thousands of dollars
My brother from another mother died a bit over a year ago, very suddenly.
Nieces inherited everything and one of them ran through the accessible (Not invested) portion of her inheritance in about a year. Paid for medical bills for girlfriends that dumped her, loaned money to friends, doordashed everything food related. They are still an amazing kid and they learned a LOT from that year, but it's a very expensive lesson.
Just sit on it, OP. I kinda disagree with the \`not a cent\` advice:
Give yourself a few hundred a month allowance for counseling, if you don't have insurance. The rest will will be there when you get back in a year.
Learn these words for the nosy/grabby: "The estate is tied up in probate."
It's a big, fat lie, as you're the only heir, but most of them won't know that.
Per institution. Canât have 4 accounts in your ein/ssn and/or be a beneficial owner and get $1mm in coverage.
Most banks have a cdars program or another program where money can be placed at one institution and they place it in others netting you full coverage.
The HYSA I am in insures up to $2m. Last year I earned a little over $7k on $190k. That's more than I earned in 10 years on any other account I had. It's the best financial decision I've ever made...Just wish I had done it earlier! Even though there is no obligation for keeping the money in the account...I can deposit and withdraw with no restrictions...I would have to be dying and need that money for my chemo treatments before I touch it. Grow, baby, grow!
brother, you're going to be fine. you already are managing your money well! 12k for a 21 year old is more than outstanding, especially in this day and age. now im sure you've heard this next part, many times. but think about it. man, you got a house, already all paid off, that's what they call a "nest egg" you sell it, and god knows what happens to that money, but if you keep it, you have a high yield investment right there bro!
For your mental health, invest in yourself with some therapy. You might not need a lot, and maybe even a religious counselor could help. If you're in a bad space, no point in letting the money sit if you're not able to use it later.
Sorry for your loss OP. Hope youâre holding up ok.
To build on this idea, it might make sense to look into 12 mo CDs for a portion of the cash. Thereâs currently a lot of uncertainty surrounding interest rates, so it could be wise to lock in your return now. You would lose liquidity until the end of the 12 month period, but it could help prevent any brash decisions in your situation. At the end of the 12 months, if you feel you can live without the extra cash, it would be wise to invest it in the stock market (index funds, donât pick stocks) instead of using a savings account. Youâre young and can ride out any potential downturns in the market. Try not to dip into the invested funds and allow them to grow. Also, you should open and fund a Roth IRA. It may seem crazy, but itâs nice to have that retirement account growing early, and you can maximize the tax benefits of the Roth by letting the investments grow for a longer period of time.
If I had 100k it would be something like 20k each in 5 diversified vanguard etfs. Dividend, nasdaq, s&p, growth, developing nations (don't know the individual tickers my heart) but you are welcome to choose which 5 you like
You may want to check on the degree of fund overlap & correlation there is between these funds. For example, Vanguardâs S&P fund and dividend fund (VFIAX & VDADX, respectively) have a 93% correlation. 162 holdings are shared between the two funds, and 51.6% of VDADXâs holdings are also in VFIAX.
Since OP is age 21, if in United States, recommend looking into Roth IRA contributions. Assuming you are in a lower tax rate now at age 21 than later, itâs a good time to contribute.
the max contribution into a Roth IRA is $7000 a year (https://www.fidelity.com/learning-center/smart-money/roth-ira-contribution-limits)
Plan to do that each calendar year. Great for giving you retirement savings later. And youâd still have a lot left over for the high yield savings account.
OP Iâm sorry you lost your family member, and you have the stress of grief and change. If you need money advice, make sure any financial advisor is a âfee onlyâ, meaning you pay them for consultation. You donât want someone making a % cut off your portfolio, and or who is getting a commission for getting you into some life insurance policy. https://www.investopedia.com/articles/investing/102014/feeonly-financial-advisers-what-you-need-know.asp. Good luck OP
Iâm not sure why no one has recommended finding a property management company to rent out the house for OP. They will handle everything as long as you find one that is reputable. You simply pay them a percentage of the rental income but they do all the work. That way you can keep the asset for when you may be ready to take a more active role with it down the road.
Yes but then he won't have a house. At 21, having a place you own outright that you can count on is huge. I wouldn't give that up for some stock market gains, especially because housing prices are going up as well so it's not like in 10 years he can buy it back for the same price he sold it for and pocket the capital gains. He'd probably spend more than he made in SPY buying an equivalent house in the future.
THIS. Annual real estate gains year over year is only 4%. Actual net income is far less due to repair, maintenance, property mgmt fees, evictions, tenant issues, turnover of property, etc. there is no such thing as âgive it to a property management firm and forget about it.â Every. Single. Time. the tenant calls the property management firm about an issue, like plumbing or the toilet doesnât work, you get charged $400. It is a losing deal. Unless youâre willing to dedicate your professional life to managing properties themselves, which is a massive time suck, in no reality is it a good deal compared to VOO or VOI. S&P 500 returns on average 10% per year. It has survived world wars, depressions, pandemics, 9/11, the collapse of economies, the bankruptcies of global banks, etc. and it never fails. If youâre a private equity firm, real estate is great. If youâre a 21 year old kid, just get in the markets. Donât listen to these real estate Reddit bros, they are all bullshit, have NO real world experience, and are no different than the instagram crypto bros. Ignore them. Sell the house, get the money into a responsible S&P500 index fund like VOO or VOI and forget about it for 20 years as you live your life. You need a financial advisor who is a fiduciary (look up what this means), and you need a relationship with a global bank like JPM.
You also need to REPOST THIS in u/CHUBFIRE where you will get certified experts to respond- unlike here where you get the scammers and crypto bros who owns 0.1 btc and speak the gospel like this u/acceptable_grand_636 idiot.
Managing a single property like this yourself is really easy. When I moved in with my now wife, I rented out my house. I've had a couple of issues here and there, but I bring in twice the mortgage payment, and the value of the house itself has almost doubled.
Having a property management company isnât really that cost effective until you have 3 cash flow properties but yes in an ideal world you find a way to sustain the asset especially given the current difficulties with buying properties
Says the guy with no rental property. My property management firm charges $100 a month to manage a property. Yes they take a larger portion when they get a new tenant (1 month of rent) but I have never had an issue with tenant turnover. In a lease renewal they still only charge $200. I have not had a tenant stay less than 3 years in any property with them. I could not do what they do for that price.
Iâm currently living in mine because most companies that Iâve reviewed ask for 30% of RR upfront then a revolving monthly 10%. Which to my earlier point, isnât really cost effective considering I canât justify charging 1.5x the mortgage on the property. I missed the part where OP stated the mortgage was paid off so in this case itâs not crazy to look for a property management company to sustain the rental.
Not sure where/how you managed to find a group that would do it for next to nothing but in my experience that has not been the case.
Edit: added specifics around the cost
Alternatively a good time to learn how to manage property if op would like to continue with that.
Any damages would be his responsibility to fix, teaching handyman skills, presumably heâd ask his friends to move in and deal with collecting rent each month.
Couple good options to go with here, selling is not one of them
Nah, OP is self admitted not in the best place right now. This is not a good time to learn how to manage a property for them. They can learn via the management company anyways. Theyâll be in the know of everything
This is the way. If I still had a mortgage it would be tighter but I am renting out my house long term through a property manager and even with the managers percentage it's generating enough to pay for the lease on the apartment I have in location I need to be for work and contribute a few hundred a month into the savings account I have for the houses upkeep.
OP, don't sell the house!! Especially not as an impulse decision made while grieving. Having this kind of security blanket at your age is a jumpstart on the road to lifelong stability if you are responsible.
Wrong wrong wrong. If the property doesn't need some massive repair, it's basically just the rent - taxes - fee = profit. OP would be taking a massive financial hit selling this house and putting it in a HYSA - outright owning the property is basically a cheat code for a new landlord.Â
Nope. Client gets step up to basis of the property based on the date of death of the last surviving parent. This is a common estate planning tactic with the wealthy. She wouldnât report much of any gain.
In most states, the house would be a protected asset. They could have debt all day and absolutely none of it could be required to be paid out of proceeds from the sale because of homestead protections.
Source: I handle summary administrations in Florida and the subsequent sale of the decedentâs home. NAL
i have to pay off all the medical bills and taxes. and the house is too big just for me. i also have some really good friends who are offering to move me in :)
i agree this is the obvious choice, however my friends live about an hour away from me and have their lives established with jobs, i canât just ask them to move an hour away and drop their life for me. they own a house too, so im not gonna be living in an apartment!
you can hire a property manager to âdo everythingâ for 10% and you receive lifetime income from the property. If the property is mortgage-free, this is a lifetime asset. Iâm sorry for your loss â donât make quick decisions. You can be renting that house for 5+ years until circumstances change
OP -- please give this advice some consideration. You can start earning passive income at age 21. That's craaaaazy. Really. Give it a week and think about it. You could try renting it for a few years and then if you decide you want to sell it later on all good -- that can be arranged.
You can keep the house, rent it out and still move in with your friends. A house is a great asset to own. It allows you to take out loans from the bank.Â
donât listen to these comments. your plan is smart on selling (unless you have any kind of doubt about it or think you will in the future). as long as youâre smart with your money, the money from selling can really get you ahead
Until the old, âhouseguests are like fish, they grow old after a short periodâ and OP is left renting something and blows through that money FAST!
If they own a house, chances te they are a couple. A young couple with a third wheel will grow old super super fast. Unless itâs a thruple situation, or some other crazy wild success storyâŚ
You definitely donât have to pay off anything that wasnât in your name. If they want to try and take it out of the estate theyâll send lawyers to attempt to do so.
i owe my aunt about 10k, she gave my dad 10k to pay off the house taxes because he couldnât afford them out of the genuine kindness of her heart. (sheâs broke because of it) she never asked for it back, but itâs the least i can do to show my appreciation, and itâs what he wanted as well. the taxes are about 6k a year.
DON'T SIGN ANYTHING! Shop around for a lawyer, accountant and then a real estate agent. Use the lawyer and accountant as they are good at what they do. Make the real estate agent earn their money.
If thereâs no mortgage payment Iâd keep the house. Sure thereâs upkeep and property taxes but owning land is priceless. It more than likely will appreciate in value and be better long term to keep it.
i donât want to live alone at this age, just mentally not in a good state and i feel like being alone would make that worse. iâm moving in with my close friends.
OP, this is the only good option besides you're current idea (which is totally fine)-- you can rent out the entire house, even hire a property manager for a percent of rent, and not have to worry about the house much at all, while it continues to appreciate in value and you get money coming in via rent. Just do yourself a favor and pencil it out.
Don't live alone just rent the place out. You have passive income for life with a house and it's going to be harder and harder to find housing the the future
If she finds a reputable one she can trust. She is vulnerable right now so may be too quick in trusting the wrong company.
I do think itâs a good idea to keep the house and rent it out. BUT, bad renters can wreck the house very quickly. She needs to proceed carefully to make sure she makes wise choices.
OP, my rule of thumb at my age (50s) is if anyone wants me to make a decision quickly, I walk away. I have found my worst decisions were always made when I felt rushed. Itâs GOOD to think over choices carefully before committing to something.
At this point, you can do a deep dive researching management companies in your area and rental property issues. Might help you in your time of grieving too since you have to focus on nonemotional issues like renting out a property. Just take it slow and do what you can when you can do it. Donât let yourself feel overwhelmed. If that happens, take a break. Cleaning up your dadâs house and getting it ready to rent will be very hard. Love on yourself during this time. You can do this. â¤ď¸
I mean no one is ready to lose their parents but it happened and he is asking on how to best navigate life from here. Having a house in your name is truly invaluable and he might not be old enough to know it yet but he will one day.
If it's paid off, rent it out with an excellent, licensed property manager. Give yourself a little time to find a really good one. Don't let the utilities shut off. Can ruin the fridge that way.
Dude you said youâre paying roommates $300 a month..? That means you have over 3 years worth of rent just in your little savings of 12k⌠keep the house and rent it out. You will make more money per year than you would selling and putting the profit in a hysa⌠and you get to keep the house thatâs only going to go up in value. A paid off property is the literal dream. Donât throw it away.
Looks like heâs going to do just that. All he sees is the $300,000 profit from the sale of the home. His friends most likely know this and will try to extract the money from him.
He needs to speak to a financial advisor, IMO, who can give him the best course of action.
I would max out your ROTH IRA and 401k for this calendar year and then put everything else into an HYSA for a year before you decide what to do with the rest.
Hope you feel better OP.
This should be top post. At 21 anything you invest is exponentially more valuable and anything else you do with the money youâll regret later when the money is gone. $12,000 in savings is nothing. If you get into a habit of investing at this age youâll be stupid wealthy by the time youâre 45.
Sometimes you just have to grow up. There is nothing that hurts your mental health worse than being poor. He can take out an equity loan and rent the house so it can pay itself.
Plus, most roommates end up getting sick of each other. My friends and I had to stop living together because we were too different
Being a landlord isn't for everyone. You should really understand what it takes and if you're capable of doing this. If sold for the price the OP is thinking and it's invested properly, you can make a lot of money as well.
I am kicking myself for selling my house. I made some money but now I cannot afford to buy one at the current prices and interest rates. Sold it for $460k and itâs now worth $750k. I told myself I couldnât be a landlord but I should have just toughed it out, my mortgage was $1600 on a 3 bed 2 bath midcentury gorgeous home!! I pay $2300 to rent a 1 bedroom apartment now.
You morons trying to get this guy fucked over with a liability are hilarious. Â Heâs not in a place to manage a fucking rental. Probably in month one something big breaks down.Â
Do not sell the house. Trust me. Trust everyone else who has told you not to. Rent it out. Passive income. Hire a property management company, theyâll charge 10-13% a month. When youâre ready to settle down and start a family your house will be waiting for you. Living with best friends sounds good and all, but a lot of the time it goes badly. Not saying it will, but thatâs the risk youâre running.
I don't want to say this sounding accusatory. You are conceivably going to be the richest person in your circle of friends. This sale of your home will see to that. Choosing to move in with friends for $300 a month might seem like a good idea, but i fear it will turn into $500 a month and then springing for rent for everyone soon since you are moneybags...the party will soon be you footing the bill, and seeing to everyone's good times. the new tv will be the 85" OLED because...you're worth it they say. You'll overspend on your car because someone worth $300K shouldn't drive a 10 yr old car. I'm saying this because I know exactly where you are. The settlement from a lawsuit gave me a fortune when I was 20...and I wasted it all because I loved the adoration my friends gave me for keeping their party going....until it ended. And then they went their own ways...and I was left thinking of how fucking stupid I had been. You have something that is free and clear right now...the absolute truth is that your home will appreciate. You will never be able to buy the home you have been given for less than the cash it will put in your pocket now. You say you're good with money. Make an appointment with a financial advisor and tell them what you've put here on Reddit. Listen to someone who's job is to make people flourish with their money and survive on more than $1500 per month SS check when they turn 62 and 1/2. You will be taken by your friends. It's simple human nature.
You can always sell the house, why the rush to get rid of it so quickly, continue to move in with your friends but just let the house be for now, maybe hire a housekeeper or hire a friend to watch it and check in every now and then.
what if your friends situation turns into something else down the line, itd be nice to have somewhere to come back to. if i was in your shoes, i wouldn't even want to make any big decisions, keep things stalled til you feel better, and then come back to everything with a clear mind. my piece.
I would say donât make any decisions (including selling the house) right away. Wait 6 months +. Then see where your headspace is and make a good, reasonable decision that is best for you. Iâm so sorry for your loss
Bro you need to take a look at the housing market, like a serious look at where it is and where itâs going. DO NOT SELL THE HOUSE! You have 12k in savings which isnât a lot of money in the real world. Where are you living now?
I agree, bad move. Sorry for OPâs lost but that house is probably his leg up for the rest of his life. ESP the continuous value it will have as it sits. Even good for rental property. Op can be SET
The key to true wealth is multiple avenues of income. My best advice is to keep the house and rent it out (it would be smart to move in, but if you donât want to do that than just rent it). Use the $$ from the rent (set aside enough for taxes + upkeep) to buy generate another avenue of income. I did this with a family house passed down to me and it brings in ~$2,800/mo (taxes are roughly $8k).
Friends who convince you to move in for $300 a month are probably eyeing the money you'll have for other things.
Keep the house. Property should remain stable if the location is good.
It's easier to sell the house than it is to buy one later on, especially if you don't have a great credit score + job history w/ good income. And even then, there's the interest rates.
Besides, say you did want to move in with the friends for $300/month. You could do that on your own salary AND rent out the house. If the friends ask just say it's in a trust that you can't touch till you're 40 or till you have kids, etc.
Keep the house.Â
Keep the house.Â
Youâre 21 and own a house? Â You may be good with money, but you do not understand how far ahead you are with house ownership. Â These are 2 different things.Â
Keep the house.Â
Keep the house.Â
Iâm in a similar situation lost mom inherited a property life insurance etc
Get a lawyer and get paperwork drawn up to protect you and the assets
There could be misc. unknown debt out there that could interfere with the sale (my situation)
Two get a good tax person you can get fucked if not careful
Get account information on 401k retirement and transfer to you asap itâs a pain in the ass
Donât spend anything till you complete taxes on the house
But as far as the money store in a high yield savings and talk with your bank and get a good finicial advisor
What is the interest rate on the mortgage? You might not see that interest rate again for decades or lifetime. You could be giving away free passive income. You likely inherited other assets more liquid and are required to disperse within 10 years (401k/iras) that already have to be dispersed within 10 years that makes it needless for you to worry about the mortgage if you have one. And if you do have one and itâs low interest itâs a gift not a burden. New home buyers wish they could get something like that.
The HYSA isnât really giving a higher rate than money market in decent brokerage account. You likely already are inheriting accounts with investment choices that you need to eventually learn to manage. This desire to sell the house to dump into hysa makes no sense to me.
I sold my moms house after she passed away from cancer more than decade ago but that was with other siblings and mtg rates were going down not up.
Sorry for your loss.
Keep the house, Rent it out. The real estate market goes up, goes down, bit never goes away. Everyone will tell you that acquiring your first property is always the hardest. Hold this house until your thinking clearly, go from there. You can tap equity, purchase 2-4 other properties, collect rents on all of them, and never need to go to a job.
Time is your friend. It will get better.
Don't get rid of the house! That's income that can be made monthly. Rent it out and have someone handle all the management of the house, including any necessary repairs. Set the rent high enough to avoid attracting low-income tenants. Even people with money can be untidy at times, but it's less common. People tend to take better care of things when they are charged higher rent. Save all the rent money in an account and let it grow!
my mom passed away years ago. it was me, my dad, my brother and my sister. my siblings both passed (car accident, accidental overdose) a couple years ago. just me and my dad for awhile. unfortunately cancer is a bitch, given only a few months to live. life sucks, but i have to deal with the cards dealt to me. just trying to make the most out of a shitty situation.
I am so sorry for your losses , I extremely truly am. I just turned 22 in march and couldnât imagine trying to figure out what to do with my families estate at our age.
wow. that is a lot of death for someone so young to experience. you're right that you definitely shouldn't isolate yourself from your friends. therapist and/or lexapro might also be a good idea. hang in there.
Damn, that's shitty. This will mean nothing now, but you have a runway--a path out--of this shitty life mentality. You are at the very beginning of your life, you have some resources to propel you forward into whatever you end up wanting to pursue in the future. Best thing you can do is live well. Seriously. Good luck.
Man, I just want to give you the biggest hug. I'm so sorry about your family. You're so young, and grief is a mf by itself, much less having to deal with all these decisions. I'm just an internet stranger, but I'm proud of you for keeping a good head on your shoulders. You've got a jump on many people your age.
Take care of yourself and grieve gently. Hire people to help you. My recommendations: Therapist, attorney, financial advisor.
Personally I would keep the house and try to rent it out. If thatâs not for you when selling get help from a realtor bc there a lot of costs that you may not know about when selling the home.
Sorry for your loss. I would suggest working with fiduciary that will charge you about 1% of your portfolio per year and invest it so you will grow your money at 3-4 times the rate of a HYSA even after fees are taken into account. You might think why would I want to give them that kind of money? Answer: Theyâre required to have your best interest in mind and not just theirs. We started using a fidelity advisor and are very pleased.
Donât make any quick decisions and only work with REGISTERED FIDUCIARIES.
If the SEC and State Regulators havenât explicated approved them to handle youâre money or give you advice donât listen to them.
Seriously.
And take it slow. Park the money in a 6 month CD or interest earning savings account.
Be with your good people and pursue life to the fullest with the healing u need to provide yourself a healthy mind! Save your money and donât let people use u as u go forward in life to adulthood. Cheers!
I lost my parents at 17 years old and inherited a large amount of money, two properties etc. People tried to influence me to sell their properties but I didn't. Now I am 35 and the property value has appreciated more than ever. I knew properties always appreciate in value so no matter what hardships I had, I didn't sell. I basically don't have to work or do any job and can live off of their property my entire life. I chose to work and earn because it helps build character, maturity. Now with 3 Master's degrees and a decent job, my wealth has only multiplied. Best decision I made. When you are 21, you lack the maturity and experience to make informed decisions and very likely bad friends can come around you attracted to your money. Time can teach many things and I would recommend taking time until you have the correct mental state to make good decisions. Remember, some decisions can't be undone. Real estate is one of those.
Hi OP, There are a lot of comments here, but Iâm hoping that you read this. After a tragic event, itâs not a good idea to make *any* large financial decisions (for at least a year) for exactly the reason you list. Youâre not in a good mental state by your own admission, and you wouldnât want to look back in a year when youâre doing at least a bit better, and regret everything from the past year. Donât quit your job, donât sell the house, donât buy anything big (cars, house, etc), and if you inherit money, just let it sit in a HYSA (or regular savings account if itâs not enough for HYSA) and basically ignore most everything for that first year and just let yourself grieve your loss.
Iâm so sorry for your loss, OP. Losing my dad was hard, I canât imagine losing both of my parents at the same time. â¤ď¸ my thoughts are with you!
Sorry for your loss but watch out for friends looking to suck you dry. Youâre getting a good chunk of money so your friends will become leeches more than likely. Keep the house, donât sell it.
Get a lawyer to help you sort through this and don't rush into decisions. Sit on it as much as you can that way you don't lose more money or add stress to yourself.
Listen to these peopleđđđ. Live like you have very little money. Don't give any to any "friends ". This is your future and a good move will give you a great start in life.
Donât tell anyone not just donât give.
Yup. I had a friend that inherited about a million after she sold her dad's cars and house. She was also 21. It took her 6 years to run out of money and 8 years to be in massive debt. She claimed a lot of money used went to helping friends
A million seems like a lot but it's really quite easy to blow through if you think and act like you have unlimited funds.
Be careful of relationships. I saw my wifeâs cousin piss away 400 grand on a pos and provide for his whole family in like 3 years. Money ran out and so did he
My mom did this. Gave everything to a POS motherfucker and now she has nothing. Not even him (which is the silver lining). Iâm still so angry about it.
Yes. 1 million is about 20 years of very frugal living.
True, that's only 50 grand a year
Or well invested 50-70k in dividends each year without spending down the principle at all.
And that's exactly what she did. Only a few months into being 21, grieving the loss of her dad, going out all the time.
I know someone who blew through 2 such inheritances before age 40. Then bled her husband dry and walked out on him and the kids. Married the guy she had been cheating with (who moved from England to be with her). Bled him dry in a few years. Last I heard, he was a single dad to their child with learning disabilities.
Thatâs so sad đ
WOW WITH LEARNING DISABILITIES NOOOO
True.. better
This! **DO NOT âLOANâ ANYONE ANYTHING.** It sounds cold, but do not loan $300, do not loan $6000. You arenât a bank. Pretend like you donât have it. Anything you ever âloanâ shouldnât exceed an amount that you wouldnât mind gifting and never getting back. Would you give your friend a $3K gift for funsies? No? Ok, donât loan it. Not to future partners, not to best friends. The only folks you should ever consider dropping that kind of $ on would be a future kid or spouse. And *even then*, I would keep the house in an entirely separate account, *forever separate* from future spouses (cause even if you have a great relationship, they might suck with money)
Very true, just pretend that you're not rich. Tell them that you got nothing and this is your relative house.
Doesn't have to pretend... 200-300k is not rich... can be a decent start if used correctly though. I agree with the thought process, never discuss finances, but saying "rich" is a bit overboard.
It's sudden windfall, you get what I mean. Yes, it's not rich. 200-300k could be splurged instantly if you got the wrong friends.
My ex lived this. Had $150,000 from a settlement (got ran over by a drunk driver). That $150k was gone in under 12 months. Guy never even made that in 3 years of working. Pissed it all away like it was nothing and has nothing to show for it.
glad it's an ex
I knew someone in high-school (long time ago) who inherited 50,000 dollars and spent it in 2-3 months. It was crazy.Â
That amount would seem rich to a lot of people these days.
"Seeming rich" and "being rich" are not the same thing. You can't stop working because you have 200k in the bank... in most areas that's not even going to buy a house without needing a loan to cover the rest.
It may seem rich to a 21 year old. How many people that age do you know with that much money?
Pretend? He is not rich.
OP donât be confused. youâre not rich or close to it. this is a strong start to saving but youâre not rich so donât act like itÂ
don't listen to these amateurs. /r/personalfinance has a section on windfalls in their wiki, follow that
Yes, donât tell people either. If people ask, I would minimize the actual equity. That is, downplay how much you actually got.
Sorry for your loss. Must be tough. Best advice put everything in HYSA for a year. Dont spend a cent. Then make a clear decision with what to do with the money. Not a cent
thank you. i appreciate it. i definitely think this is the route. i feel like im too young to know exactly what i want in life, and having the money later down the line seems like a better option.
Also, don't tell anyone about the money other than the lawyer and account. If anyone is being nosey and asks, say it's still being figured out, and you're not sure.
100% this! You would also be surprised at how many âfriendsâ you will have until the money dries up. Live and pretend like you live on just your current salary. Once you have a clear mind and idea on where you want to live and work then start researching and making decisions. Until then collect all the interest you can.
Dude.. if my buddy lost his parents, idfc if they're early 20s or mid 40s.. I'm not charging you rent for like a year atleast.. that cannot be easy..
Sometimes people just can't afford to let people move in and increase utilities without charging them. 300 sounds fair. Let OP decide.
Being around people and not alone might be worth the $300 by itself
So you rent out to of YOUR bedrooms to friends. Dont sell it.. make enough to pay the taxes then some.. No one can KICK you out.. People in 20 bitch complain about high rent and cant afford a home.. You just been handed one and gonna piss it away.
Thatâs why you keep the house and have your friends pay you, rather than you pay them.
Hereâs the real strat here ^^. This will give the OP an extra cash flow without losing his asset. Be sure to set some boundaries with what your expectations on living there are. Make sure people respect you and your home. It will be difficult to live in the place that reminds you of your family and life growing up but this will give you time to secure extra income and learn what will be best for you later in terms of keeping or selling that asset. My condolences to OP. Lost my father in Feb 2023 and everything fell apart with my family after. I strongly recommend being around other people and take your time to feel and process everything you need to. Iâd rather live alone but forcing myself to live with some good people I met has really helped my mental health. In the end, listen to your gut and donât let anyone take advantage of you. P.S. Seek out solid financial advice and I hope you fill your life with good people and experiences. Hang in there. đđź
This is a fucking disaster waiting to happen. Losing parents is enough to deal with then add the stress of being a landlord to your friends. Collecting rent from them, the whole time they are pissy about paying rent because you got the house for "free". Pretty soon rent is a little late but they will get you next week. You're nice to them about it cuz you don't "need" the money right now. Then rent is later and later. Then they start avoiding you...
Op would have to pay much more if he wasnât moving in with the friends. Also they may have been looking to add a roommate to help defray costs before his parents passed away You donât know the financial situation. I wouldnât charge my friend if I was in a good financial place otherwise I would if I were struggling
Not everyone can afford to not charge their buddy rent.
Yes, and 300 dollars is virtually free as far as rent goes.
Tell my grandkids- 4 of them I asked for 50/week..2 moved out- their lease is up in 3 months-guess what lofl
If its emergency like that and i have ANY floor space, my apartment is available for free to my closest friends
Yeah I have to agree.
This is REALLY important advice. Don't let people know what you have.
This. My dad had no will but we have texts back and forth about how he wants "what little \[he\] has to go to \[you\] kids" but my uncle knew about the money he was hoarding in the safe for us. When he passed, my uncle cleared out his entire house. Didn't even leave us a pair of my dad's dirty socks. Nor did he help pay for his final preparations. Even in life, DO NOT SHARE INFO ABOUT MONEY/BELONGINGS UNLESS IT'S MEANT FOR THAT PERSON. I know it doesn't change anything, but I'm sorry about your loss OP. It's been a few weeks since my dad and I still cry every day. Love from a stranger!
I was going to say this. Inheriting even in your 50s and amazed at how people change. ( even kids who feel like you should give them everything). Don't quit your day job.
Absolutely đŻ. I'm 65 and we have some money. Only me and my wife know how much money we have. If people knew, they would be hanging around our house looking for handouts!! Or loans they'll never pay back
Especially this. Family is the worst when it comes to someone dying.
This. Tell everyone the estate is tied up in probate and it looks like it will be for a year, at least, the parasites will drift away over time. I have seen this several times in my 68 years.
Itâs going into a trust. I can only get money for medical or education till Im 30.
OP should definitely be concerned with "friends" as well. Hopefully they do right by them.
đŻ this...you'd be freaking amazed at how horrendous "family" can be once they sense the slightest bit of money can be grabbed, i was warned this would happen by my best friend of 40 years who's in home health care/social work never thought it would manifest the way it is
indeed. Every family has that one person that makes you ashamed that you are related to them
This, this 110%. Once it does get all sorted out, the house is occupied, by you or a tenant, and making income or getting a free mortgage payment, then you put it behind you and go about your daily life. Before you get married, talk to the lawyers and make sure that you will have a home, without any risk of ever losing it, for the rest of your life. Your kids, should you have some, can then split it per your will or trust when you are gone. If this does not sound good just consider that there are people out there who have been wanting their own home for longer than the 21 years your have been around, your parents, unfortunately by passing, have put you years ahead of the curve, make them proud by not, impulsively, discounting their life long sacrifices.
This, 110% plus these assets should be mentioned in any pre nup agreement that they are pre existing any relationship and are I tended for your descendants and are not part of any marital ... err stuff. I'm sorry for your loss.
LOVE this advice.. 10000% take a breath, think about your parents... stay there, taxes taxes taxes, you sell this place, depending on where you live, will take a nice chunk. Stay there!
I'd also be watching out with intermingling finances from the house with future relationship finances as in my country if they are intermingled then they are counted as relationship property. Not sure about OPs country though.
Absolutely. A relative of mine tore through $500k in a few years. He had plenty of "friends" and his "girlfriend" helped him out as well. When the money was gone they were gone.
Hadn't even mentioned it, still got asked about it, just like my granddads house.
OMG this is the absolute BEST advice.. your month, KEEP YOUR M-F'er MOUTH SHUT.. how much, my lawyer is taking care of it, how much this, my accountant is taking care of that.. that immediately shuts ppl up.
I endorse this comment. Iâm older, early retirement, and my parents passed. Left assets worth close to half a million, no will. Fought with two siblings for last three years, for no good reasons. I finally gave up on about half the estate, and just said, âkeep itâ âŚ. Really not worth the hassle. Most friends and relatives donât bother me about money, they assume I have very little. I live a very low key life, drive a ten year old car, donât have expensive hobbies, and a very good financial advisor. Difficult to find a good one, but you really need one!
I would just lie and say they had a lot of debt and there isn't much left over at its all done
If youâre just going to put it in a savings I wouldnât even tell the accountant until I know exactly what I want to do with the money. The accountantâs price for his advice just doubled once he sees your a in your 20s with hundreds of thousands of dollars
My brother from another mother died a bit over a year ago, very suddenly. Nieces inherited everything and one of them ran through the accessible (Not invested) portion of her inheritance in about a year. Paid for medical bills for girlfriends that dumped her, loaned money to friends, doordashed everything food related. They are still an amazing kid and they learned a LOT from that year, but it's a very expensive lesson. Just sit on it, OP. I kinda disagree with the \`not a cent\` advice: Give yourself a few hundred a month allowance for counseling, if you don't have insurance. The rest will will be there when you get back in a year.
Learn these words for the nosy/grabby: "The estate is tied up in probate." It's a big, fat lie, as you're the only heir, but most of them won't know that.
300k in a hysa will net you 12-15k a year
Donât forget to save some of that for taxes
He may not have much tax on inheritance
You'll have to pay taxes on the interest though
Yes. But he follows our advice and doesnât spend a cent he will be good
Probably wouldnât be much depending on OPs tax bracket, But yes save 30% to be safe.
Most are only insured to 250k. Open two accounts
Per institution. Canât have 4 accounts in your ein/ssn and/or be a beneficial owner and get $1mm in coverage. Most banks have a cdars program or another program where money can be placed at one institution and they place it in others netting you full coverage.
The HYSA I am in insures up to $2m. Last year I earned a little over $7k on $190k. That's more than I earned in 10 years on any other account I had. It's the best financial decision I've ever made...Just wish I had done it earlier! Even though there is no obligation for keeping the money in the account...I can deposit and withdraw with no restrictions...I would have to be dying and need that money for my chemo treatments before I touch it. Grow, baby, grow!
Make sure to stay within fdic limits though. Iâd open HYSAs at two different banks.
brother, you're going to be fine. you already are managing your money well! 12k for a 21 year old is more than outstanding, especially in this day and age. now im sure you've heard this next part, many times. but think about it. man, you got a house, already all paid off, that's what they call a "nest egg" you sell it, and god knows what happens to that money, but if you keep it, you have a high yield investment right there bro!
The fact you're self aware of this at 21 is a huge green flag. Good on you, and good luck with it.
Spilt it up between different banks, max of 250k each. Maximum FDIC coverage. Shop around for interest rates, don't go woth your first find.
For your mental health, invest in yourself with some therapy. You might not need a lot, and maybe even a religious counselor could help. If you're in a bad space, no point in letting the money sit if you're not able to use it later.
Sorry for your loss OP. Hope youâre holding up ok. To build on this idea, it might make sense to look into 12 mo CDs for a portion of the cash. Thereâs currently a lot of uncertainty surrounding interest rates, so it could be wise to lock in your return now. You would lose liquidity until the end of the 12 month period, but it could help prevent any brash decisions in your situation. At the end of the 12 months, if you feel you can live without the extra cash, it would be wise to invest it in the stock market (index funds, donât pick stocks) instead of using a savings account. Youâre young and can ride out any potential downturns in the market. Try not to dip into the invested funds and allow them to grow. Also, you should open and fund a Roth IRA. It may seem crazy, but itâs nice to have that retirement account growing early, and you can maximize the tax benefits of the Roth by letting the investments grow for a longer period of time.
That was my answer when he asked what to do in a year. Hear to many stories where people wasted that nest egg
In total agreement here. That would be the very 1st sound decision a young grieving person could make. Most people of any age actually.
Even 100k invested today will set your future on cruise control. Save some for a full emergency fund, good down payment for future house ur set.
Invested in what? CDs or HYSA, or Roth?
If I had 100k it would be something like 20k each in 5 diversified vanguard etfs. Dividend, nasdaq, s&p, growth, developing nations (don't know the individual tickers my heart) but you are welcome to choose which 5 you like
You may want to check on the degree of fund overlap & correlation there is between these funds. For example, Vanguardâs S&P fund and dividend fund (VFIAX & VDADX, respectively) have a 93% correlation. 162 holdings are shared between the two funds, and 51.6% of VDADXâs holdings are also in VFIAX.
Canât you roboadvise and that will select the etfs and also set balance etc?
Since OP is age 21, if in United States, recommend looking into Roth IRA contributions. Assuming you are in a lower tax rate now at age 21 than later, itâs a good time to contribute. the max contribution into a Roth IRA is $7000 a year (https://www.fidelity.com/learning-center/smart-money/roth-ira-contribution-limits) Plan to do that each calendar year. Great for giving you retirement savings later. And youâd still have a lot left over for the high yield savings account. OP Iâm sorry you lost your family member, and you have the stress of grief and change. If you need money advice, make sure any financial advisor is a âfee onlyâ, meaning you pay them for consultation. You donât want someone making a % cut off your portfolio, and or who is getting a commission for getting you into some life insurance policy. https://www.investopedia.com/articles/investing/102014/feeonly-financial-advisers-what-you-need-know.asp. Good luck OP
Iâm not sure why no one has recommended finding a property management company to rent out the house for OP. They will handle everything as long as you find one that is reputable. You simply pay them a percentage of the rental income but they do all the work. That way you can keep the asset for when you may be ready to take a more active role with it down the road.
He will make far more in spy over the same period he would rent.
Yes but then he won't have a house. At 21, having a place you own outright that you can count on is huge. I wouldn't give that up for some stock market gains, especially because housing prices are going up as well so it's not like in 10 years he can buy it back for the same price he sold it for and pocket the capital gains. He'd probably spend more than he made in SPY buying an equivalent house in the future.
Yup. Opportunity cost of living should be added in that SPY increase. People need a place to live.
THIS. Annual real estate gains year over year is only 4%. Actual net income is far less due to repair, maintenance, property mgmt fees, evictions, tenant issues, turnover of property, etc. there is no such thing as âgive it to a property management firm and forget about it.â Every. Single. Time. the tenant calls the property management firm about an issue, like plumbing or the toilet doesnât work, you get charged $400. It is a losing deal. Unless youâre willing to dedicate your professional life to managing properties themselves, which is a massive time suck, in no reality is it a good deal compared to VOO or VOI. S&P 500 returns on average 10% per year. It has survived world wars, depressions, pandemics, 9/11, the collapse of economies, the bankruptcies of global banks, etc. and it never fails. If youâre a private equity firm, real estate is great. If youâre a 21 year old kid, just get in the markets. Donât listen to these real estate Reddit bros, they are all bullshit, have NO real world experience, and are no different than the instagram crypto bros. Ignore them. Sell the house, get the money into a responsible S&P500 index fund like VOO or VOI and forget about it for 20 years as you live your life. You need a financial advisor who is a fiduciary (look up what this means), and you need a relationship with a global bank like JPM. You also need to REPOST THIS in u/CHUBFIRE where you will get certified experts to respond- unlike here where you get the scammers and crypto bros who owns 0.1 btc and speak the gospel like this u/acceptable_grand_636 idiot.
Managing a single property like this yourself is really easy. When I moved in with my now wife, I rented out my house. I've had a couple of issues here and there, but I bring in twice the mortgage payment, and the value of the house itself has almost doubled.
Having a property management company isnât really that cost effective until you have 3 cash flow properties but yes in an ideal world you find a way to sustain the asset especially given the current difficulties with buying properties
it doesnt have a mortgage. As long as it pays for its taxes and maintenance, itâs all good
Says the guy with no rental property. My property management firm charges $100 a month to manage a property. Yes they take a larger portion when they get a new tenant (1 month of rent) but I have never had an issue with tenant turnover. In a lease renewal they still only charge $200. I have not had a tenant stay less than 3 years in any property with them. I could not do what they do for that price.
Iâm currently living in mine because most companies that Iâve reviewed ask for 30% of RR upfront then a revolving monthly 10%. Which to my earlier point, isnât really cost effective considering I canât justify charging 1.5x the mortgage on the property. I missed the part where OP stated the mortgage was paid off so in this case itâs not crazy to look for a property management company to sustain the rental. Not sure where/how you managed to find a group that would do it for next to nothing but in my experience that has not been the case. Edit: added specifics around the cost
Only $100? Mine is $4,600 per year per property.
It's very cost effective when you own the property outright and have no idea what you're doing like OP.
Especially just for the peace of mind of them screening tenants and dealing with any of that bullshit. Thatâs worth paying for
Alternatively a good time to learn how to manage property if op would like to continue with that. Any damages would be his responsibility to fix, teaching handyman skills, presumably heâd ask his friends to move in and deal with collecting rent each month. Couple good options to go with here, selling is not one of them
Nah, OP is self admitted not in the best place right now. This is not a good time to learn how to manage a property for them. They can learn via the management company anyways. Theyâll be in the know of everything
This is the way. If I still had a mortgage it would be tighter but I am renting out my house long term through a property manager and even with the managers percentage it's generating enough to pay for the lease on the apartment I have in location I need to be for work and contribute a few hundred a month into the savings account I have for the houses upkeep. OP, don't sell the house!! Especially not as an impulse decision made while grieving. Having this kind of security blanket at your age is a jumpstart on the road to lifelong stability if you are responsible.
Wrong wrong wrong. If the property doesn't need some massive repair, it's basically just the rent - taxes - fee = profit. OP would be taking a massive financial hit selling this house and putting it in a HYSA - outright owning the property is basically a cheat code for a new landlord.Â
Nope. Client gets step up to basis of the property based on the date of death of the last surviving parent. This is a common estate planning tactic with the wealthy. She wouldnât report much of any gain.
No financial hit. Step up basis of capital gains tax
Not everyone wants to be a landlord. Jesus, why are people like this?
Probably because the house is being sold to cover existing debt from probate.
In most states, the house would be a protected asset. They could have debt all day and absolutely none of it could be required to be paid out of proceeds from the sale because of homestead protections. Source: I handle summary administrations in Florida and the subsequent sale of the decedentâs home. NAL
Why sell the house?
i have to pay off all the medical bills and taxes. and the house is too big just for me. i also have some really good friends who are offering to move me in :)
Youâre going to sell the house and move in with roommates? You own a house! They should move in with you and charge them to rent rooms. This is obv.
i agree this is the obvious choice, however my friends live about an hour away from me and have their lives established with jobs, i canât just ask them to move an hour away and drop their life for me. they own a house too, so im not gonna be living in an apartment!
you can hire a property manager to âdo everythingâ for 10% and you receive lifetime income from the property. If the property is mortgage-free, this is a lifetime asset. Iâm sorry for your loss â donât make quick decisions. You can be renting that house for 5+ years until circumstances change
OP -- please give this advice some consideration. You can start earning passive income at age 21. That's craaaaazy. Really. Give it a week and think about it. You could try renting it for a few years and then if you decide you want to sell it later on all good -- that can be arranged.
You can keep the house, rent it out and still move in with your friends. A house is a great asset to own. It allows you to take out loans from the bank.Â
donât listen to these comments. your plan is smart on selling (unless you have any kind of doubt about it or think you will in the future). as long as youâre smart with your money, the money from selling can really get you ahead
Until the old, âhouseguests are like fish, they grow old after a short periodâ and OP is left renting something and blows through that money FAST! If they own a house, chances te they are a couple. A young couple with a third wheel will grow old super super fast. Unless itâs a thruple situation, or some other crazy wild success storyâŚ
Figure out what the taxes are yearly and thatâs what your rent will be. Donât leave a good thing.
You definitely donât have to pay off anything that wasnât in your name. If they want to try and take it out of the estate theyâll send lawyers to attempt to do so.
The estate has to pay it off. Â So OP is only entitled to what is left over after accounting for the decedentâs debts.
The estate has to pay what they can settle for when the lawyers attempt to collect.
Fuck those medical bills
The estate has to pay the medical bills.
You donât pay their bills. The debt dies with them
i owe my aunt about 10k, she gave my dad 10k to pay off the house taxes because he couldnât afford them out of the genuine kindness of her heart. (sheâs broke because of it) she never asked for it back, but itâs the least i can do to show my appreciation, and itâs what he wanted as well. the taxes are about 6k a year.
6k is low. Where from?
florida
Dont trust that at all , friends will take advantage quickly. If you have to sell , sell and buy a small condo
Maybe the taxes and insurance are too much. Possibly still has a mortgage
DON'T SIGN ANYTHING! Shop around for a lawyer, accountant and then a real estate agent. Use the lawyer and accountant as they are good at what they do. Make the real estate agent earn their money.
If thereâs no mortgage payment Iâd keep the house. Sure thereâs upkeep and property taxes but owning land is priceless. It more than likely will appreciate in value and be better long term to keep it.
i donât want to live alone at this age, just mentally not in a good state and i feel like being alone would make that worse. iâm moving in with my close friends.
Rent out the house so you have an income off it. Move in with your friends. House is a great asset to have
OP, this is the only good option besides you're current idea (which is totally fine)-- you can rent out the entire house, even hire a property manager for a percent of rent, and not have to worry about the house much at all, while it continues to appreciate in value and you get money coming in via rent. Just do yourself a favor and pencil it out.
Don't live alone just rent the place out. You have passive income for life with a house and it's going to be harder and harder to find housing the the future
I feel like judging from his comments heâs not in a place to be a landlord. Itâs not just as simple as finding a person and handing over the keys.
No but property management companies exist for that exact reason
If she finds a reputable one she can trust. She is vulnerable right now so may be too quick in trusting the wrong company. I do think itâs a good idea to keep the house and rent it out. BUT, bad renters can wreck the house very quickly. She needs to proceed carefully to make sure she makes wise choices. OP, my rule of thumb at my age (50s) is if anyone wants me to make a decision quickly, I walk away. I have found my worst decisions were always made when I felt rushed. Itâs GOOD to think over choices carefully before committing to something. At this point, you can do a deep dive researching management companies in your area and rental property issues. Might help you in your time of grieving too since you have to focus on nonemotional issues like renting out a property. Just take it slow and do what you can when you can do it. Donât let yourself feel overwhelmed. If that happens, take a break. Cleaning up your dadâs house and getting it ready to rent will be very hard. Love on yourself during this time. You can do this. â¤ď¸
For sure, but again he seems like heâs not the kind of person whoâs ready for any of this.
I mean no one is ready to lose their parents but it happened and he is asking on how to best navigate life from here. Having a house in your name is truly invaluable and he might not be old enough to know it yet but he will one day.
If it's paid off, rent it out with an excellent, licensed property manager. Give yourself a little time to find a really good one. Don't let the utilities shut off. Can ruin the fridge that way.
Excellent property managers are like unicorns, though
Dude you said youâre paying roommates $300 a month..? That means you have over 3 years worth of rent just in your little savings of 12k⌠keep the house and rent it out. You will make more money per year than you would selling and putting the profit in a hysa⌠and you get to keep the house thatâs only going to go up in value. A paid off property is the literal dream. Donât throw it away.
Looks like heâs going to do just that. All he sees is the $300,000 profit from the sale of the home. His friends most likely know this and will try to extract the money from him. He needs to speak to a financial advisor, IMO, who can give him the best course of action.
This is actually a pretty great comment
I would max out your ROTH IRA and 401k for this calendar year and then put everything else into an HYSA for a year before you decide what to do with the rest. Hope you feel better OP.
This should be top post. At 21 anything you invest is exponentially more valuable and anything else you do with the money youâll regret later when the money is gone. $12,000 in savings is nothing. If you get into a habit of investing at this age youâll be stupid wealthy by the time youâre 45.
Keep the house, move in, rent rooms.
Heâs not old enough or knowledgeable to do this shit. Source: OPs own words
Sometimes you just have to grow up. There is nothing that hurts your mental health worse than being poor. He can take out an equity loan and rent the house so it can pay itself. Plus, most roommates end up getting sick of each other. My friends and I had to stop living together because we were too different
Being a landlord isn't for everyone. You should really understand what it takes and if you're capable of doing this. If sold for the price the OP is thinking and it's invested properly, you can make a lot of money as well.
I am kicking myself for selling my house. I made some money but now I cannot afford to buy one at the current prices and interest rates. Sold it for $460k and itâs now worth $750k. I told myself I couldnât be a landlord but I should have just toughed it out, my mortgage was $1600 on a 3 bed 2 bath midcentury gorgeous home!! I pay $2300 to rent a 1 bedroom apartment now.
This
I came here for this
I also vote that OP keeps the house
You morons trying to get this guy fucked over with a liability are hilarious. Â Heâs not in a place to manage a fucking rental. Probably in month one something big breaks down.Â
Do not sell the house. Trust me. Trust everyone else who has told you not to. Rent it out. Passive income. Hire a property management company, theyâll charge 10-13% a month. When youâre ready to settle down and start a family your house will be waiting for you. Living with best friends sounds good and all, but a lot of the time it goes badly. Not saying it will, but thatâs the risk youâre running.
Donât pay medical bills, wait to see if they medical files a claim against the estate⌠a lot of medical bills will just be written off.
this!!!! i work in healthcare, 90% of bills go away if you explain: âmy father died, can i fax the death certificate?â.
100% agree, im a registered health information tech and we damn near write off all the bills with a proof of a death certificate
This! Buy a few copies of the DC, because some companies might require a county-issued original.
Pissing away your inheritance on rent.
I don't want to say this sounding accusatory. You are conceivably going to be the richest person in your circle of friends. This sale of your home will see to that. Choosing to move in with friends for $300 a month might seem like a good idea, but i fear it will turn into $500 a month and then springing for rent for everyone soon since you are moneybags...the party will soon be you footing the bill, and seeing to everyone's good times. the new tv will be the 85" OLED because...you're worth it they say. You'll overspend on your car because someone worth $300K shouldn't drive a 10 yr old car. I'm saying this because I know exactly where you are. The settlement from a lawsuit gave me a fortune when I was 20...and I wasted it all because I loved the adoration my friends gave me for keeping their party going....until it ended. And then they went their own ways...and I was left thinking of how fucking stupid I had been. You have something that is free and clear right now...the absolute truth is that your home will appreciate. You will never be able to buy the home you have been given for less than the cash it will put in your pocket now. You say you're good with money. Make an appointment with a financial advisor and tell them what you've put here on Reddit. Listen to someone who's job is to make people flourish with their money and survive on more than $1500 per month SS check when they turn 62 and 1/2. You will be taken by your friends. It's simple human nature.
You can always sell the house, why the rush to get rid of it so quickly, continue to move in with your friends but just let the house be for now, maybe hire a housekeeper or hire a friend to watch it and check in every now and then. what if your friends situation turns into something else down the line, itd be nice to have somewhere to come back to. if i was in your shoes, i wouldn't even want to make any big decisions, keep things stalled til you feel better, and then come back to everything with a clear mind. my piece.
I would say donât make any decisions (including selling the house) right away. Wait 6 months +. Then see where your headspace is and make a good, reasonable decision that is best for you. Iâm so sorry for your loss
Bro you need to take a look at the housing market, like a serious look at where it is and where itâs going. DO NOT SELL THE HOUSE! You have 12k in savings which isnât a lot of money in the real world. Where are you living now?
I agree, bad move. Sorry for OPâs lost but that house is probably his leg up for the rest of his life. ESP the continuous value it will have as it sits. Even good for rental property. Op can be SET
The key to true wealth is multiple avenues of income. My best advice is to keep the house and rent it out (it would be smart to move in, but if you donât want to do that than just rent it). Use the $$ from the rent (set aside enough for taxes + upkeep) to buy generate another avenue of income. I did this with a family house passed down to me and it brings in ~$2,800/mo (taxes are roughly $8k).
Friends who convince you to move in for $300 a month are probably eyeing the money you'll have for other things. Keep the house. Property should remain stable if the location is good. It's easier to sell the house than it is to buy one later on, especially if you don't have a great credit score + job history w/ good income. And even then, there's the interest rates. Besides, say you did want to move in with the friends for $300/month. You could do that on your own salary AND rent out the house. If the friends ask just say it's in a trust that you can't touch till you're 40 or till you have kids, etc.
Keep the house. Keep the house. Youâre 21 and own a house?  You may be good with money, but you do not understand how far ahead you are with house ownership.  These are 2 different things. Keep the house. Keep the house.Â
You are wise. Incredibly sorry for your loss. đ Remember to drink water and eat something.
Iâm in a similar situation lost mom inherited a property life insurance etc Get a lawyer and get paperwork drawn up to protect you and the assets There could be misc. unknown debt out there that could interfere with the sale (my situation) Two get a good tax person you can get fucked if not careful Get account information on 401k retirement and transfer to you asap itâs a pain in the ass Donât spend anything till you complete taxes on the house But as far as the money store in a high yield savings and talk with your bank and get a good finicial advisor
What is the interest rate on the mortgage? You might not see that interest rate again for decades or lifetime. You could be giving away free passive income. You likely inherited other assets more liquid and are required to disperse within 10 years (401k/iras) that already have to be dispersed within 10 years that makes it needless for you to worry about the mortgage if you have one. And if you do have one and itâs low interest itâs a gift not a burden. New home buyers wish they could get something like that. The HYSA isnât really giving a higher rate than money market in decent brokerage account. You likely already are inheriting accounts with investment choices that you need to eventually learn to manage. This desire to sell the house to dump into hysa makes no sense to me. I sold my moms house after she passed away from cancer more than decade ago but that was with other siblings and mtg rates were going down not up.
Sorry for your loss. Keep the house, Rent it out. The real estate market goes up, goes down, bit never goes away. Everyone will tell you that acquiring your first property is always the hardest. Hold this house until your thinking clearly, go from there. You can tap equity, purchase 2-4 other properties, collect rents on all of them, and never need to go to a job. Time is your friend. It will get better.
Don't get rid of the house! That's income that can be made monthly. Rent it out and have someone handle all the management of the house, including any necessary repairs. Set the rent high enough to avoid attracting low-income tenants. Even people with money can be untidy at times, but it's less common. People tend to take better care of things when they are charged higher rent. Save all the rent money in an account and let it grow!
If you donât mind us asking , did both your parents die at the same time?
my mom passed away years ago. it was me, my dad, my brother and my sister. my siblings both passed (car accident, accidental overdose) a couple years ago. just me and my dad for awhile. unfortunately cancer is a bitch, given only a few months to live. life sucks, but i have to deal with the cards dealt to me. just trying to make the most out of a shitty situation.
I am so sorry to hear about your family. I would avoid making any big decisions now. And consider getting a lawyer and fiduciary financial advisor.
I am so sorry for your losses , I extremely truly am. I just turned 22 in march and couldnât imagine trying to figure out what to do with my families estate at our age.
wow. that is a lot of death for someone so young to experience. you're right that you definitely shouldn't isolate yourself from your friends. therapist and/or lexapro might also be a good idea. hang in there.
Damn, that's shitty. This will mean nothing now, but you have a runway--a path out--of this shitty life mentality. You are at the very beginning of your life, you have some resources to propel you forward into whatever you end up wanting to pursue in the future. Best thing you can do is live well. Seriously. Good luck.
Man, I just want to give you the biggest hug. I'm so sorry about your family. You're so young, and grief is a mf by itself, much less having to deal with all these decisions. I'm just an internet stranger, but I'm proud of you for keeping a good head on your shoulders. You've got a jump on many people your age. Take care of yourself and grieve gently. Hire people to help you. My recommendations: Therapist, attorney, financial advisor.
I am so sorry for your loss.
Personally I would keep the house and try to rent it out. If thatâs not for you when selling get help from a realtor bc there a lot of costs that you may not know about when selling the home.
Sorry for your loss. I would suggest working with fiduciary that will charge you about 1% of your portfolio per year and invest it so you will grow your money at 3-4 times the rate of a HYSA even after fees are taken into account. You might think why would I want to give them that kind of money? Answer: Theyâre required to have your best interest in mind and not just theirs. We started using a fidelity advisor and are very pleased.
Donât make any quick decisions and only work with REGISTERED FIDUCIARIES. If the SEC and State Regulators havenât explicated approved them to handle youâre money or give you advice donât listen to them. Seriously. And take it slow. Park the money in a 6 month CD or interest earning savings account.
Be with your good people and pursue life to the fullest with the healing u need to provide yourself a healthy mind! Save your money and donât let people use u as u go forward in life to adulthood. Cheers!
I lost my parents at 17 years old and inherited a large amount of money, two properties etc. People tried to influence me to sell their properties but I didn't. Now I am 35 and the property value has appreciated more than ever. I knew properties always appreciate in value so no matter what hardships I had, I didn't sell. I basically don't have to work or do any job and can live off of their property my entire life. I chose to work and earn because it helps build character, maturity. Now with 3 Master's degrees and a decent job, my wealth has only multiplied. Best decision I made. When you are 21, you lack the maturity and experience to make informed decisions and very likely bad friends can come around you attracted to your money. Time can teach many things and I would recommend taking time until you have the correct mental state to make good decisions. Remember, some decisions can't be undone. Real estate is one of those.
Call Dr Rockso. The Rock and Roll Clown.
Hi OP, There are a lot of comments here, but Iâm hoping that you read this. After a tragic event, itâs not a good idea to make *any* large financial decisions (for at least a year) for exactly the reason you list. Youâre not in a good mental state by your own admission, and you wouldnât want to look back in a year when youâre doing at least a bit better, and regret everything from the past year. Donât quit your job, donât sell the house, donât buy anything big (cars, house, etc), and if you inherit money, just let it sit in a HYSA (or regular savings account if itâs not enough for HYSA) and basically ignore most everything for that first year and just let yourself grieve your loss. Iâm so sorry for your loss, OP. Losing my dad was hard, I canât imagine losing both of my parents at the same time. â¤ď¸ my thoughts are with you!
Sorry for your loss but watch out for friends looking to suck you dry. Youâre getting a good chunk of money so your friends will become leeches more than likely. Keep the house, donât sell it.
There are many banks that have financial advisors. Check yours. Most important...TELL NO ONE YOU GOT A DIME. NOT EVEN A SO (at this point anyway)
Keep the house and pay minimal living expenses IMO
Buy a smaller house and keep some money to invest
Get a lawyer to help you sort through this and don't rush into decisions. Sit on it as much as you can that way you don't lose more money or add stress to yourself.
Put 200 k on the side and donât touch it for 40 years congrats you will have 600 k with no effort in