Deceased Parents home is Co owned by myself and sister

[Jeff Irwin]

it is about to go on the market. 

However,  I was wondering if I should buy my sister out since I already have half the equity and turn it into a rental? Selling price would be approx 180,000 and rents for nice homes in our zip code are 1200-1400. That would be less than 1% -----If I had to buy the whole thing. But, since I already own half, I could buy her out for 90,000 + closing bla bla black

Please give me your thoughts.

[Ralph R.]

Irwin, Jeff let it go to market and take the 90k and buy 2 or 3 PAYING properties. If you use 20 % of your equity as a down payment and walk away with enough cash to fund 2 more good properties you will have at best 2 winners and 1 mediocre property. Why would you do that? It makes little sense to tie up 90k(your equity) in a low yielding property when you could buy 2 or 3 paying ones. Cash in hand beats equity any day. That's why people do cash out re-fi's. They want the equity to purchase more property's. Your money earns a better cash on cash return if it's not setting all in one property. I.E. 3 leveraged properties should give you a higher cash on cash percentage than 1 property that you own 50% of. Also if your single property goes vacant 1 month you don't get any thing. If one of 3 goes vacant you still have the other 2 properties performing for you. I would never put all my eggs in one basket like that. RR