New and learning

[Matt Moore]

Hi everyone my name is Matt!! I've been interested in real estate for a few years now and I've been listening to the bigger pockets podcast and also the rookie podcast. I wanted to know if anyone knows how to acquire property from your parents? My mother has a condo in MO that's been vacant and I want to take it over and make it a rental or airbnb. She no longer wants anything to do with it.

[KC Ushijima]

She could gift the property to you.

She could sell you the property.

She could leave it for you as an inheritance.

There are pros and cons with each of the options.

With a gift, there can be gift tax forms, and you do not get a stepped up basis.

If you buy the property, you have to spend some money, and if the purchase price is not at a fair market value, there may be some gift tax forms to fill out.  

There could also be realized gain for your mother.

If you wait for it as an inheritance, you get a stepped up basis.  But you have to wait until she passes away.

One possible alternative is to lease the property from her and then sublease the property.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.