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To keep or to sell, that is the question

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To keep or to sell, that is the question

Old 12-05-2019, 03:18 PM
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Default To keep or to sell, that is the question

My sister and I are about to inherit a house. She is adamant on selling, and will probably piss away all the money, I would like to optimize the opportunity and thinking of holding it as a rental property and perhaps leverage other investments. I could probably buy her out, and I am considering leveraging the property to do that.

Challenges for me are....
  • The 40 year old house needs updating. It's well taken care of, but just dated and obvious Sr. Citizens lived there.
  • The neighborhood is transforming and becoming more "ethnic". Half of the residents are Sr Citizens who lived there for 40-50 years, and the other half are incoming families of various origins.
  • It's 1200 miles away
  • No (trustworthy) family in the area to lean on.
  • No real experience as a landlord.

The more I think about it, the more I think selling is a better move, but I don't want to leave any money on the table for something I am not thinking of.


Old 12-05-2019, 03:21 PM
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1200 miles away is one option. Property management company. I would sell and use the funds to acquire something local!!

John
Old 12-05-2019, 03:25 PM
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Sell
sell
Sell
Sell!!!!!!
Old 12-05-2019, 03:26 PM
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No way i would want to be a landlord 1200 miles away. Sell!
Old 12-05-2019, 03:27 PM
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it would have to be a pretty sweet set up for me to want to be a landlord from 1200 miles away. I was 2.5 hours away once, and it was out of necessity because of housing market at the time we rented rather than sold. Never again.

Sell it, buy something locally if you want to get into that.
Old 12-05-2019, 03:28 PM
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Rental houses are ok if you are near and handy. I would be broke if I had to pay for a service to go out everytime a tenant calls about a problem. I would have to vote "sell".
Old 12-05-2019, 03:33 PM
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My inlaws moved across the street from us when they were older. When they passed away we sold the house, just at the market peak also. We put the money into some investments etc and we are glad we did. 1200 miles is a great distance to work with when you have to get repairs done etc and not able to routinely check on things. I would say sell. Now is a sellers market also, who knows if that will change soon.
Old 12-05-2019, 03:37 PM
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Speaking as a former absentee landlord, you have been given some excellent advice above!
Old 12-05-2019, 03:37 PM
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Originally Posted by treadlife View Post
No way i would want to be a landlord 1200 miles away. Sell!

And particularly in business with a sister who doesn't want to be in business with you or... at all. Let her have her share and do as she wants. You do good with yours. Or buy her out but I don't; recommend that. Cut your losses now .
Old 12-05-2019, 03:42 PM
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You don't want to "buy out" a relative. If it turns out to be a great deal for you she'll resent it, and if you lose your shirt you'll feel you overpaid her.

Sell and split the $ down the middle and let her piss away and learn from it.
Old 12-05-2019, 03:46 PM
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I inherited a house in Florida with 2 siblings that live within 5 miles of the home. This was in 2017 andI live 1200 or so miles away and was the only one of the three that could of afforded to buy them out and make it a rental. I flew down South, had the house professionally de cluttered, and had it on the market 1/2 way through my 3 day weekend visit. Most of my family members said I was crazy, but I do some repairs to some friends local rental homes on Long Island, and it's amazing what people can and will do to a rental home. Sell and buy local to you if you want to become a landlord. It's more work than most people realize. It can be profitable and I've seen some people lose their shirts.
Old 12-05-2019, 03:53 PM
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Are there any tax implications? If you sell
Old 12-05-2019, 03:57 PM
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Originally Posted by meritmat View Post
Are there any tax implications? If you sell
Good question. It's in Illinois, so probably.
Old 12-05-2019, 04:02 PM
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Because of "The neighborhood is transforming and becoming more "ethnic"." , the property values are likely to drop!


Old 12-05-2019, 04:05 PM
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My wife maintain her Florida house as a rental when we married and she was a full time Texan with both of us traveling a lot for work.

It became a money pit as, between her corporate life and my military duties, neither of us were close enough to fix the simple things and we were constantly hiring things out. We sold the Florida place a couple of years after we got married.

Long range renting is not high on my list. I am in a similar quandary now about selling the Texas place or renting it out when I pack up and move to Iowa. Solid rental market in Central Texas, but with your renters often being military you have a lot of turnover.
Old 12-05-2019, 04:23 PM
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I am counting the days until I’m no longer a long distance landlord next summer.
Sell it, Sell it, Sell it.
Did i mention you should sell it?
Old 12-05-2019, 05:07 PM
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A neighbor moved from our area 6 years ago, happy to have found a good tenant. 1st few years, good. From there it’s been declining every since. About 2 months ago I noticed a big pile of old lumber and drywall at the curb.... uh oh. Just about 6 weeks later the entire bunch suddenly moved out. I don’t know what the damage was but there has been a steady flow of contractors since move out day. Right now there’s a huge stack of building material at the side of the house.

SELL

Local is ok.... long distance, no way.
Old 12-05-2019, 05:21 PM
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Originally Posted by popeyeiii View Post
Good question. It's in Illinois, so probably.
probably no tax implications if you sell..

when you inherit a home, the cost basis is stepped up to the value on the "date of death".

assuming you sell right away, there will be minimal of any taxes
Old 12-05-2019, 05:30 PM
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I was a long distance landlord for four years. Painless until I went to sell and the property manager’s fraud was exposed.
I wouldn’t do it again.
Old 12-05-2019, 05:47 PM
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1200 miles = Sell. Do not pass go do not collect $200

i have had a pile of rentals and I will never buy another one that i can’t drive to it or the local courthouse in 15 mins

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