What to Do With an Inherited House in Pueblo
Keep it, rent it, or sell it? Understanding your options helps you make the right decision for your situation.
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Your Three Main Options
Option 1: Keep the Property
Pueblo offers affordable living with a warm climate, rich cultural heritage, and lower cost of living than the Denver metro area. If you have been considering relocating to southern Colorado, keeping the inherited property could make sense.
Pros of Keeping
- - Preserve family memories and history
- - Potential for property appreciation
- - Vacation home or future residence
- - No immediate tax on gains (stepped-up basis)
Cons of Keeping
- - Ongoing costs (taxes, insurance, utilities)
- - Maintenance responsibilities
- - Ties up capital that could be invested
- - Difficult to manage from a distance
Option 2: Rent the Property
Pueblo's rental market is more affordable than the Front Range, with typical rents ranging from $950-$2,000/month depending on size, condition, and neighborhood. This can provide ongoing income while you retain ownership of the property.
Pros of Renting
- - Monthly income to offset costs
- - Retain ownership and potential appreciation
- - Tax deductions for landlord expenses
- - Option to sell later
Cons of Renting
- - Landlord responsibilities and liability
- - Tenant problems (non-payment, damage)
- - Vacancy periods with no income
- - Property management costs if hiring help
Option 3: Sell the Property
Selling provides immediate cash and eliminates all ongoing responsibilities. For many heirs, especially those living outside Colorado, selling is the most practical choice. A cash sale to us means no repairs needed, no agent commissions, and a fast closing.
Pros of Selling
- - Immediate cash for heirs
- - No ongoing costs or responsibilities
- - Stepped-up basis minimizes capital gains tax
- - Clean break and closure
Cons of Selling
- - Loss of family property permanently
- - Cannot benefit from future appreciation
- - Emotional difficulty of letting go
- - Traditional sale can take months
Questions to Help You Decide
1. Where do you live?
If you live outside Pueblo (or outside Colorado), managing the property becomes significantly more difficult. Long-distance landlording requires either frequent trips or hiring a property manager, which cuts into any rental income.
2. What condition is the property in?
Many inherited homes have deferred maintenance. If the property needs major work (new roof, HVAC, foundation repairs), the cost of making it rentable or sellable on the open market could be substantial. We buy as-is, eliminating this concern.
3. Do you need the cash?
If you have other financial priorities - paying off debt, funding retirement, investing elsewhere - selling provides immediate liquidity. The stepped-up basis for inherited property means you often owe little to no capital gains tax.
4. Are there multiple heirs?
When multiple people inherit property together, coordinating decisions becomes complex. Keeping or renting requires all heirs to agree on expenses and management. Selling allows a clean split of proceeds with clear ownership.
5. What are your emotional considerations?
Some heirs want to hold onto family property for sentimental reasons. Others find that the ongoing burden of property ownership extends grief rather than providing closure. There is no right answer - only what is right for you.
Pueblo Inherited Property Options FAQs
Renting can provide ongoing income, but Pueblo's rental market has its own dynamics. Average rents in Pueblo are $950-$2,000/month depending on size and condition. Before becoming a landlord, consider: Can you manage the property from where you live? Are you prepared for tenant issues, maintenance calls, and vacancy periods? Do you want to handle the legal responsibilities of being a landlord? For many out-of-state heirs, the hassle outweighs the benefits.
Pueblo has relatively low property taxes compared to the Denver metro area, but costs still add up. Expect to pay property taxes ($1,500-$3,000/year for typical homes), homeowner's insurance ($1,200-$2,400/year), utilities if keeping the property conditioned ($150-$300/month), and maintenance (typically 1-2% of home value annually). For a $300,000 home, ongoing costs could be $500-$900 per month before any major repairs.
Consider these questions: Do you want to live in Pueblo? Can you afford the ongoing costs without the rental income? Are you prepared to be a long-distance landlord? Do you need the cash from the sale for other purposes? Is the property in good condition or does it need significant work? Most heirs who live outside Colorado find that selling makes the most sense financially and emotionally.
If you want to keep the property but struggle with costs, you might consider renting it out to cover expenses, using a home equity line of credit (if you have sufficient equity), or selling and using the proceeds to purchase a smaller property. However, if the property needs repairs or you are managing from a distance, these options often prove more difficult than anticipated.
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Evaluating Your Inherited Property Options
Inheriting a house in Pueblo comes with both opportunities and responsibilities. The property represents your family's history and potentially significant value, but it also brings ongoing costs, maintenance needs, and decisions that can feel overwhelming during an already emotional time.
Before making any decisions, take time to understand all your options. Each choice has pros, cons, and financial implications that depend on your personal circumstances, the property's condition, and your long-term goals.
Below we outline the three main options for inherited property - keeping, renting, and selling - with honest assessments of what each involves.
Estimated Costs of Keeping vs. Selling in Pueblo
The following estimates are based on a typical $300,000 inherited home in Pueblo. Your actual costs may vary based on property condition, location, and other factors.
| Expense | Annual Cost (Keeping) | One-Time (Selling) |
|---|---|---|
| Property Taxes | $2,000 - $3,000/year | Prorated at closing |
| Homeowner's Insurance | $1,200 - $2,400/year | $0 |
| Utilities | $1,800 - $3,600/year | $0 |
| Maintenance | $3,000 - $6,000/year | $0 (we buy as-is) |
| Agent Commission | N/A | $0 (selling to us) |
| Total First Year | $8,000 - $15,000 | Minimal closing costs |
Note: These figures do not include major repairs, which can cost $10,000-$50,000+ for older Pueblo homes needing roof, HVAC, or foundation work.