What Would You Do ? (Inheritance ? )

**Steena** · 04-20-2005, 06:49 AM

This scenario happened over a year ago, but just wondered how others felt. My dear mother passed away a year ago December, and left her rental house to my sister and I. We lived in this house years ago in the 1960's. Believe it or not, the same family has rented it out since 1974. I know that is mind boggling, but the rent is dirt cheap.....$100 a month for the first 15 years, now $200 a month. They probably couldn't live under a bridge for that amount of rent. Anyway, my sister thought that we should just give the house to the loyal tenants, and I disagreed. I ended up buying her out for $5000 (house isn't worth much) and now I own the house. Our relationship has really gone downhill since this property issue, and I know that she thinks that I was very selfish in not agreeing to give the house to the tenants...even though she was more than happy to take the money from me. (I would never have taken the house without paying her off). I guess that I am looking at this from a business standpoint. Yes, the tenants have been great and they deserve cheap rent, but I wasn't about to give them a house. What do you think?

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**freeplease** · 04-20-2005, 06:58 AM

I think you did the right thing. These tenants aren't family, they're renting from you. Sometimes sisters go crazy and hang onto the crazy like a dog with a bone. She'll either get over it, or she won't.
And is the rent even covering your insurance and taxes? You might want to take a look at the financial aspects.

**hblueeyes** · 04-20-2005, 07:00 AM

If your Mother had wanted the tenants to have the house she would have left it to them instead of you and your sisiter. Next time your sister tells you how selfish you are than mention that she took payment for the house. I bet you'd be surprised how much your house is worth. I'd contact a local realtor and get a free appraisal. It might be the land has more value than the home. You are lucky to have good tenants as well and since I do not know where you are located you may be surprised to find what real rent you can get. But you ight want to stick with the tenants you have since they seem to pay and not be much of a bother.

Sorry to hear about your Mom but I think so far you have done nothing wrong, legally or morally.

From a business standpoint you did good. You will earn you money back in a few short years. Remember you need to claim the rent as income and pay taxes and insurance on the building and property but once you have recouped you cost you are in the clear.

Me

**Steena** · 04-20-2005, 07:19 AM

Yes, I do pay insurance and taxes amounting to about $500 a year. I also did claim the rent as income last year. A few years back, I heard my stepdad say something about leaving the house to the tenants, and I was surprised to hear that as it wasn't HIS house to give. I approached my mom then and told her that I didn't agree with what he was saying. I am glad this came up then, as maybe the house would have been willed to them....I really don't know. My stepdad has a huge nest egg and maybe he just can't relate to my own family, who is just making it at times. I look at this property as an investment that will pay off one day.

**buckkelly** · 04-20-2005, 08:45 AM

You could always sell it to them. They would have a nice house, you could put the money in the bank.

**schsa** · 04-20-2005, 08:53 AM

I would find out the value of the house. The family has been there for 30 years so it's not as if they are going to move out but they have more than paid for the house after that much time. With the rent that low it is possible that they really couldn't afford to finance and buy the house from you.

For that little money it might be worth it to sell it to them so that you don't have to pay the taxes. Or do any upkeep if something goes wrong with the house like the water heater, or any plumbing issues or electrical issues.

**llbriteyes** · 04-20-2005, 09:02 AM

I agree with everyone else, but I wuold add that in my opinion, $200/mo. wasn't worth losing your sister over.

Linda

**ebgreen74** · 04-20-2005, 09:14 AM

yes her sister should keep that mind

**Steena** · 04-20-2005, 09:30 AM

Yes, I agree, it is not worth risking my relationship with her, however, I did not agree with her on this matter. My sister lives the attitude "only the best for me". I think she looked at this house as way below her where I looked at it as an investment opportunity. I also do not believe that my deceased father, who purchased the home many yrs ago, would have agreed to give it away.
I believe the tenants have paid for the house a few times over, but they were approached 2 or 3 times in the past to buy the house. They were offered some sort of land contract deal ( a good deal), and either didn't want the hassel or just couldn't qualify for any loan. So it never happened.

Regarding my sis, there has been a money incident in the past, so this is not the breaking straw with her. We are two completely very different people, and nothing is going to change that.

***lassss*** · 04-20-2005, 09:36 AM

I would get an appraisal on the house and see what it is worth...like another poster said, the land might be worth more then the house. I would then make the decision to offer to sell it the renters or keep it....Real estate is usually an asset unless it is in really bad condition but even so, the land has some worth. I think your sister was wrong for wanting to give the property to them as another poster said if your mom wanted them to have it, she would have willed it to them. Perhaps your sister does not the value of real estate or just doesn't care about the property but now it is in your hands so do what you feel is best

Also the tenants prolly have not paid for the house over and over
15 yrs x 12 month = 180 payments of 100.00 = 18,000
16 yrs x 12 month = 192 payments of 200.00 = 38,000
so they paid a total of 56,400 but they did not pay taxes

I would also see it as an investment property and a source of some extra income

**llbriteyes** · 04-20-2005, 09:49 AM

Sorry... I guess I just didn't understand your relationship with your sister. Since she has sold her part to you, you can do whatever you want with it. I agree... have it appraised.

Linda

Originally Posted by Steena

Yes, I agree, it is not worth risking my relationship with her, however, I did not agree with her on this matter. My sister lives the attitude "only the best for me". I think she looked at this house as way below her where I looked at it as an investment opportunity. I also do not believe that my deceased father, who purchased the home many yrs ago, would have agreed to give it away.
I believe the tenants have paid for the house a few times over, but they were approached 2 or 3 times in the past to buy the house. They were offered some sort of land contract deal ( a good deal), and either didn't want the hassel or just couldn't qualify for any loan. So it never happened.

Regarding my sis, there has been a money incident in the past, so this is not the breaking straw with her. We are two completely very different people, and nothing is going to change that.

Thread: What Would You Do ? (Inheritance ? )

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