Inherited my dads home and wondering if its better to sale it or rent it out?

[Waylon Bruce Moore]

My father died recently and my wife and I along with my sister inherited my father's house. The house is a 2600 sq foot, 4 bedroom / 2 bath home that needs a medium reno ( new paint, flooring, bathroom vanities, and kitchen cabinets). It also has an additional 600 sq. ft Den with an outside entrance that could be converted into an apartment. My question is should we sell the house "as is" which would bring us about $400k total or do the reno and then do a room rent with shared spaces of the large kitchen, dining room, and giant living room? We could get about $4800 per month with the room rent. Thoughts? 

[Richard F.]

Aloha,

Or, do the reno and sell for a significantly higher profit, and zero stress.

[Bill Brandt]

If you wouldn’t buy it as a rental if you had the cash in hand then you sell. It’s tax free money that you can invest when and where you want.  What are the odds this was your best possible rental property option?

[Nathan Gesner]

Quote from @Waylon Bruce Moore:

I would say it depends on your relationship with your sister. Is she 100% committed to rentals? Would she stick it out if things get tough? Would you? Do you communicate well and have similar morals?

Be careful when mixing business and family. If things go south, you can lose the relationship forever. I would only recommend it if the relationship is really strong and if you have a strong written agreement to address things as a business.

You may be better off selling the property, splitting the money, and then investing in something that is just yours and that suits your goals.