Starting out with Inheritance

[Varela Sanchez]

Hi BP,

Thank you, for your time.

I am about to finish the Probate Sale of my parents home in Inglewood, CA due to them having no estate planning. 

My plan is to finish Probate and buy a Multifamily in Las Vegas or another no or low taxed state. 

I have been studying Financial Cash Flow Independence for the past 2 years, while recovering from the Trauma of losing both parents. I became a RichDad PoorDad student and now a BiggerPockets student, with my change of mindset through Life Experiences, Studies and Determination to Succeed.

I have laid a foundation for wealth. I have a Trust, an LLC and I have "House Hacked" the property bed rooms to Family members and AirBnB Clients for the last year to gain experience in collecting funds as an Income. Instead going back to work. As well as, the many experiences that it has taught me about both types of Tenants. (smiles)

With funds coming in as an inheritance. I am curious to see if anyone else has gotten their start with an Inheritance?

Thanks so much again for your time and I look forward to hearing from you!

Varela

Now I am in the "Sale" process and learning, at the same time I need to be "Buying" with the inheritance of the Sale.

I am seeking advice on the "Buy" side of Real Estate, still learning to Analyze (smiles)

[Lynnette E.]

Sorry for your loss.

I have relatives that did buy property for rentals from their inheritance. One thing I would strongly recommend is that you do a complete assessment of the long term needs your property will have and set aside the money for those things. These are the things that are generally called Capitol Expenses CAP EX on BP. So if your roof has 10 years of life left then your can put some money from your inheritance aside to help pay to replace the roof. Or flooring or paint or plumbing, whatever.

My relative that used an inheritance for rentals bought and bought until the money was gone. Then when there were problems in the houses, the renters did not pay, the water heater went out, all the things that happen with rentals, there was not money left for these expenses. And their income was not enough to afford to pay for all the maintenance and CAP EX things that these properties needed.

In the end all the rental properties were sold and a huge ranch for personal use was bought instead.  They were tired of the headaches, but with one less properties bought originally they would not have had the headaches.  And now their inheritance costs them property tax instead of making them money.