All Forum Posts by: Garrett Richardson

Hey Jon S., 

Thanks for your reply! I would love to hear more about your experience comparing reviews on thumbtack, yelp and google and calling a few to inqure about their services for PM. Would you mind sending me your results? 

Thanks! 

I'll look into them. Thanks Heather!

My mother-in-law is moving out of her primary residence and to rent it out. It's a fully remodeled townhouse near Santa Cruz and would like a good property manager recommendation. Thank you!

Yes, Basit, she lives in a condo at the moment. I'll let her know about the exclusion of the gain of sale. She is not married. I like the idea of an installment plan. Thanks for the advice.

My mother in law is trying to decide if she should sell her condo in Santa Cruz, CA or keep it and rent it (and live with a friend).

She needs help understanding if/how she can avoid/reduce capital gains and how renting could financially work in her favor over time.

Any REI tax advisor recs would be greatly appreciated and especially if they specialize in Northern California.

Thank you!

@Lynnette E. Thank you for your input. Yes, I agree that speaking with someone who is qualified in that area would be best moving forward. Before I do, I just wanted to ask the forums and see what direction they would take a situation like this. 

She is not married. To make it a little more tricky, my wife's brother and sister would need to be included in the trust if that was the route we were to go. 

These are the only two options I can think of at the moment: 

1. Mother-in-law sells the house. 

• Pros: She gets fast cash to retire and the peace of mind with lower risk since we wouldn't be trying to maintain/rent the property. That's a fear of hers. 
• Cons: We lose an incredible opportunity to inherit a property in a prime location (10 min from the ocean), 30 min from silicon valley, incredible appreciation, ready to rent, etc. 

2. Intra-family transfer: My wife and I take over the property, pay mom for the property value she would make if she sold today AND pay out brother with income from renters over time and watch the home appreciate. 

• Pros: We keep an incredible opportunity to inherit a property in a prime location (10 min from the ocean), 30 min from silicon valley, incredible appreciation, ready to rent, etc.
• Cons: We don't see ROI for years, the uncertainty of making this a smooth family transaction, overcoming Mother-in-laws's fears of us taking it over. Mostly worried about how California politics will affect homeownership/renting, ie: Prop 13.

Thanks for your thoughts. This is such new territory for my wife and me. 

My mother-in-law owns her home in Northern California. The location is pretty incredible and the area has appreciated 80% in the last 10 years. 

She has never attempted to rent out a property and wants to sell but would open to us taking over all the responsibilities of the rental if we could take full ownership of the home. She is close to retirement, wants to move to out of state with us, and have the peace/zero risk of not having the home in her name anymore. 

We just can’t buy the home from her outright at the moment of course since it’s worth $700K. However, if we did own it and rented it, we could potentially see $1700 in passive income each month and a $250K appreciation over the next 5 years. 

It’d be amazing to keep the property in the family if possible and remove the burden of the home from her if there was a creative way to transfer it into our names without paying for the higher property taxes and pay her what she deserves for the home.

Do you know of any creative solutions or have you heard of a situation like this?

Reid, what did you decide to do? I'm in a similar situation with our mother in law's home and would love to know if you were able to make this work for you. Thanks! 

Hey Cliff, it's been a few years since this thread was started but there was some great advice shared here. I'm new at BP and considering investing in Nashville real estate. Any updates on your progress since writing this?