The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: topshot on October 11, 2017, 03:05:29 PM
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A while back my father asked if we would want their house(s) to which I declined. I was actually kind of surprised as I didn't expect to get anything even though I'm their only child. I assumed everything would go to charities or our children.
Anyway, they happen to have 2 in a fancy pants mountain resort. Aside from the fact I have no desire to live there, they have not been able to sell either one and I would not be able to afford the mortgage on either one either most likely. However, they recently put the one they don't live in anymore on AirBnB so that got me to thinking maybe I could do one as a rental/AirBnB.
Assuming they do still have one when they eventually pass, what should I be taking into consideration on determining whether it would be a good idea to inherit it? We currently have no debt but only about 200K in stache. My folks are in their mid 70s.
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1) Carrying costs at time of inheritance - mortgage, insurance, any HOA fees, maintenance etc.
2) What kind of income can you make from it, whether renting long-term or AirBnB (if AirBnB is allowed).
3) Are visitor numbers declining? I just read an article today saying that the number of skiers in the 36 and under age bracket is declining at the major resorts.
If it comes with no mortgage and you can afford the carrying costs until it sells, I'm sure you could make money on it if you price it below market for a quick sale.
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In CA, if you inherit a property, you inherit the tax basis, which can be a huge savings. Get a CPA to answer this question for you.