Need Unattached Investment Opinions

[Wade G.]

My dad passed away the house has been left to me and my two sisters.  My idea is to do one of two things, sell the house and divide proceeds three ways, or buy out my sisters and keep as a rental for me.  Problems are that family is involved, and the house would not cashflow very well, actually probably be negative after vacancies and repairs are figured in.  Numbers are as follows:

- Loan has 14 years left @ 3.5% (is a 15 year term fixed)

- Loan amount is 138k

- house will need 30 - 35k repairs

- current value is approx. 180k

- repaired value approx. 245k - 250k

- PITI is about $1,550 a month

- rental comps are about $1,650 - $1,700

So obviously not a home run as a rental.  As the successor I can assume the loan.  Considering current investment interest rates the loan is advantageous other than the 15 year term, I like 30.  Thought about possibly owner financing it too.  I'm not new to this, I have had rentals for almost 20 years now.  Cash flow wise its no good, but equity should accrue quickly.  Considering current value I would pay my sisters 15k each.  So I would be out of pocket 30k for repairs and 30k sisters buy out, so at least 60k.  That is a very steep loss of cash for basically no cash flow.  Then there is also the possibility of my sisters not being happy when the house is worth north of 300k in 10-15 years.  In my market appreciation is still strong but with rising interest rates this may be our last crazy summer sellers market.