My dad recently passed and left me with a few properties. Two are condos in Florida that have been property-managed for years. The third was his personal home in AZ. None have mortgages. There are no other heirs beside myself.
I'm pretty unfamiliar with holding real estate as investments, so I'm looking for some advice. In my uneducated opinion, the two condos in Florida appear to have been pretty good investments. The HOA dues seem a little steep, and the rents are not that high, but the tenants have been there for a few years. I have recently opened probate in order to place the properties in my name. Also, per my tax preparer, I had the properties appraised after my father's death for the step-up basis.
The house in AZ is a modest home in a decent area. I spoke with a property manager and she estimated it could draw $850-$900 in rent. Probate has completed on this property and it is my name now. Should I have this property appraised for step-up as well?
It is my intention to move back to Oregon soon. I had variously considered selling one or all three, but I don't really need the cash, and I have enough in reserve for expenses.
I don't currently own any real estate and I don't have any debts. I had considered taking a modest mortgage on the home I plan to buy in Oregon, paying the remaining two-thirds with cash.
Except for this passive income, most of my other income is tax free, except the Social Security part.
Any thoughts on this scenario? Tax implications I should be aware of? How does one compute ROI in a scenario like this? How do I evaluate the quality of these investments?