I Can’t Afford My Inherited House—Should I Sell or Hold On?

A Reddit user lost his grandmother and mother recently and is now coping with some financial issues. Specifically, while the poster’s mother left a house to him, he isn’t sure he can afford to keep it. He doesn’t know what to do, especially as he thinks he might not be able to afford to buy a house again if he gets rid of this one.

So, what’s the best move for the poster?

Consider whether the cost is worth it

The Redditor explained that he’d been living in his grandmother’s house with his mom, but now that his mother was gone, he had inherited the home, and covering the property costs was taking up around half of his monthly income. He makes $36K, and the housing costs are around $2,100 per month including a $1,100 mortgage, plus property taxes and other bills. So, he doesn’t end up with a lot left over. 

Despite the fact that he’s currently struggling, though, multiple other Redditors chimed in and told him not to sell it. “Do not sell that house. $1,100 in housing costs is unheard of, and you won’t be able to beat that anywhere in the near future. Get a roommate, ” one of the replies said.

Others also earned the poster to do the same, as with today’s mortgage rates still well above 6.00% and with rent costs and housing costs rising nationwide, giving up such an affordable property would likely be something that the Redditor ends up regretting. 

Explore ways to keep the house

Since keeping the house seems worth it given the low payment, other Redditors offered some suggestions on how to make it work, given that the numbers are currently unsustainable, with the poster left with just $1,000 each month to spend on everything else after paying the housing bills. 

One poster said the easiest solution might be to get a better job, but of course, that may not be that simple, depending on the original poster’s skills and abilities. The poster may also like their job and be OK with working at a lower salary, so just switching careers may not be a viable approach.

Others had some better suggestions that would be easier to put into practice, including finding a roommate, working a side job, or even renting the whole place out if doing so would give the OP enough money to live elsewhere while paying off the mortgage. He could eventually move back in once the mortgage was paid in full.  Some posters also said they thought if the OP could rent out two rooms, he could probably get enough money to cover the entire cost of the property, leaving himself with essentially no housing expenses. 

The OP should consider all these options and also think about setting up a meeting with a financial advisor. An advisor can help him create a long-term plan for making the house affordable and can assist him in understanding the tax implications of doing things like renting out rooms.  The advice that the advisor provides could be well worth it, as a professional can help the OP figure out how to keep this inheritance and build future financial security, jump-started by the gift of the house.