6 Siblings. 3 Properties.

[Matt Eade]

Hello fellow BPs!
I have what I think may be an unusual inheritance situation. But also probably common between siblings and parents trying to figure out how to equalize future inheritance. My father, and my grandparents built up 3 rental properties over the last two generations in upstate NY, south of Buffalo. One is a 12 unit 100+ year old 3- story Victorian apartment building. One is a duplex and the other is a SFH. They are all on the same block and all well maintained over the last 50 years by my father. There are no mortgages.

I told him years ago that I didn't think I could manage property from so far away (California) but thanks to Bigger Pockets and reading all the posts over the last year, I'm feeling that they can be managed by a good property manager. Thanks BP!

I would like to take on the Apt House. 2 other siblings would like to split the other 2 props. So 3 siblings on properties, 3 cash out. 

My goal in owning the Apt house is: cash flow, leverage equity to buy more real estate investments in CA or across the country and sell in 10-15 years. 

In order to do a full buyout for my 5 siblings, I would need to come up with $315,833. That leaves: $94,167 in equity and a LTVR of 77%. Pretty sure I can't get a HELOC of that size or with those ratios to cover the buyout.

12 Unit Apt. House

• Net Rental income: 25K which includes an est. 10% management fee.
• Valued at 400K.

Duplex

• Net Rental income: 10K.
• Valued at 80K

SFH

• Net Rental income: 7K.
• Valued at 80K

Does a full buyout to my 5 siblings make sense? 

Is it possible to get a loan based on the numbers above?

What other considerations would you be thinking of in this scenario?

Anyone familiar with tax implication on owning NY prop and living in CA?