Mothers passed, home to self and 2 others..sell or rent

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Mothers passed, home to self and 2 others..sell or rent

Martin Dillender
Rental Property Investor · Chester Springs, PA · Member since 2019 · 6 posts · 1 vote

Here is my situation. My mother passed, in Missouri (63129), and I'm on the TOD Deed (filed with county). The condo has an approximate value of $115k (based upon recent sales in same complex). HOA has no CAP for renting units out. Monthly HOA is $202 which I already pay for her. There is a $45k mortgage on it that is only in her name. I have 1 brother and 1 sister. I am the executor of her will. No spouse.

So, I'm trying to decide if I should just sell it and split proceeds or pay off mortgage, brother and sister (based on equity) and just rent it out.  I have the funds to do it (@ $88k).  I also have the funds to replace carpet, paint etc.  I live in Pennsylvania, brother and sister live in Missouri (close to her place).

What would you do?

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Dwayne Poster
Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
4y

Unless it absolutely needed something, I wouldn't put a dime into it and get it rented. Float the mortgage and if the lender calls, pay.

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  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    Unless it absolutely needed something, I wouldn't put a dime into it and get it rented. Float the mortgage and if the lender calls, pay.

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Run the numbers to see if it makes sense as an investment property. If you were paying $115,000 for it, the numbers may not work. If you're just paying the existing mortgage, it may be a nice cashflow.
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    1Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Martin Dillender

    What would I do?  I would sell since I don’t long distance investing.

    Otherwise, you need to run numbers to see if it’s worth to you rent. Value of condo is very low and not much appreciation I’m guessing.  I would still probably sell

    Sorry about your mother. Good luck 

    0Reply
  • Martin Dillender
    OP
    Rental Property Investor · Chester Springs, PA · Member since 2019 · 6 posts · 1 vote
    4y

    Thanks and appreciate your input.

    0Reply
  • Martin Dillender
    OP
    Rental Property Investor · Chester Springs, PA · Member since 2019 · 6 posts · 1 vote
    4y

    I know all the numbers except for the mgmt fees as I would just want to hand it over to a local company.

    If its not rented, it would cost me $435 a month (HOA, taxes, electric, water, sewer, insurance). So, figure while rented, electric would go to renter.

    Current rentals in that unit are running $1,100 to $1,200 a month.  The other thing that interests me (besides full time rental) is that it is right next to a new Cancer Center.  Sometimes when I visit I stay at a hotel right down the street that runs about $150 a night (Holiday Inn).  Maybe make this a AirBnB rental for families coming to the cancer center?  Looking in the area at the same time of units, AirBnB runs about 80-90 a night.

    FYI, this would be my first rental property.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Either sell or go STR. There is not enough $ in the deal to split 3 ways and have a great payday. And since it's a remote location, I would probably just sell, take the money and go STR in your own area.....

    0Reply
  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    4y

    I would never go into this business with family.  Take splitting with family 3 ways off the table.  

    1Reply
  • Derrick E.
    Investor · The Creek, WV · Member since 2014 · 890 posts · 1k+ votes
    4y

    Sell it and then take your share of the profits combined with the money you already have and go get some real investments. The only reason you are thinking about this one is because it was your moms. Totally not worth it, and dealing with HOA sucks.

    1Reply
  • Jared Garrison
    Rental Property Investor · Kalamazoo, MI · Member since 2020 · 35 posts · 40 votes
    4y

    @Martin Dillender

    If someone dropped $23,000 (your portion of the equity) on your table...would you go to Missouri and buy this condo?

    1Reply
  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    sounds like a nice maturing mortgage with good cash flow. I wouldn't fight the family to keep it for rental, but the mortgage alone could have good value. If it is close to medical, it could be a very good flowing STR

    0Reply
  • Martin Dillender
    OP
    Rental Property Investor · Chester Springs, PA · Member since 2019 · 6 posts · 1 vote
    4y

    Thanks to everyone for the input  

    I would never mix business/money with family.

    I've decided to, working with the bank, assume the mortgage, pay off brother and sister, and hired a mgmt company to run things going forward.  I'm going to keep as a LTR for now.

    cheers to all
      

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