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Updated over 1 year ago,
Drowning in Inherited Rentals
I am new to rental properties and inherited 4 small single-bed rental homes in 2021 when my dad passed away. They've all being rented for the last 10 years or so with no increases to rent. They're all in a small town where property values and sales are way down as people are moving out to find jobs. Given the mortgage on the properties, during 2022, I was $1500 negative on the business. Increasing rents by $200-$300 would obviously cost me the renters and I might not be able to replace them. In addition, my dad could easily do renovations himself, but I live 13hrs away and do not have this expertise, and every property needs 2-3 major updates like roofing, fencing, or foundation repairs that I can't even get quotes on since evidently no one wants to work anymore.
I have thought about selling them, but real estate agents have mentioned this would be difficult, so I feel like this would net nothing between the taxes and mortgages. I have thought about 1031, but since these properties are all worth less than $100,000 and I live in Nashville, I will not be able to find a property nearby at that amount. Looking for any kind of suggestions or advice, since I don't see any great options at this point. Thanks!