All Forum Posts by: Fred Martino

Ok we are finally making some progress on Mom's house in Scottsdale.  My two sisters and I inherited equal share of my mother home upon her death in 2010. My sister who lives in AZ has decided to buy us out. The house just appraised for 603K.  My question is should this considered a Cash sale or not?  Since she is keeping the house and has had the benefit of using it for her adult children to live in for the last 10 years (rent FREE).  She is proposing this breakdown.

appraised value $603,000 x 70% =$422,100-$43,100 (repairs)=$379,000-$44,000 (our costs)=$348,000 / 3 = $116,000
her previous expenses for repairs, taxes and such were about $25k over the past 10 years which we agreed to split this 3 ways.  But I am not sure where the $43,100 comes from or for that matter the 44K for (our cost) if this closing cost should be more like 9k on a cash sale right, with no points or realtor commissions. Seems like my sister and I are getting taken here.  Any thoughts are greatly appreciated. Thank you

Ok we are finally making some progress My sister who lives in AZ is going to buy out the my share and my other sisters share the house appraised for 603K.  My question is this be considered as a Cash sale or not?  Since she is keeping the house and the has had the benefit of using it for her adult children to live for the last 10 years.  she is proposing this plan 

appraised value $603,000 x 70% =$422,100-$43,100 (repairs)=$379,000-$44,000 (our costs)=$348,000 / 3 = $116,000
her previous expenses for repairs, taxes and such were about $25k over the past 10 years which we agreed to split this 3 ways (I didn't really agree with this because her kids never paid a dime for rent) so I am not sure where the $43,100 comes from or for that matter the 44K for Our cost if this closing cost should be more like 9k with no points or realtor commissions. Seems like my sister and I are getting taken here. any thoughts are greatly appreciated here.  Thank you. 

Thanks you so much for great input.  I think I"m leaning towards doing the 1031

Can I do a 1031 exchange on my third of the proceeds from the property or would have to done with the entire property

Thank you Will Do.

Thank you all for some really great input.  Definitely gives me food for thought. 

another question Could My LLC protect me from some of the capital gains tax?

Hey BP,

I total newbie to the real estate investment world, and my two sisters have inherited our mothers house in Scottsdale, AZ very older neighborhood built in 1966, and is definitely a fixer upper pool is dead and empty, and 4 br 2 bth about 2300 SF.  What do you think is our best option to sell and split the proceeds and eat the capital gains because my mom passed 10 years ago there is going to be some significant gains there. or fix up and rent. or sell and carrier the paper because it is free and clear.  I live in El Paso so tough for me to deal with contractors if we fix it. in it's current condition it would sell for about $550K I suspect the rent could go as high as $2800/mth once the pool is dealt with (filled in).  I'm not sure I want my first step into the Real Estate investment realm to be with my Sisters so any thoughts would be appreciated.  Thanks in advance for your advice.