My grandfather passed in the last year, and he left two properties to my mother to inherit. My mother is looking for me to manage the 'family decisions' when it comes to these properties. I've been learning a lot about RE lately but am still new to it all so looking for some guidance - and understand that nothing here is legal advice. My mother and I live in the midwest.
The first property is a home in San Jose, CA. The home is a 3BR 1BA with garage in a great neighborhood. The house is definitely livable, but is pretty much empty and needs a good amount of updating as it's pretty much in the same condition that it was built in in the '60s. Another small bathroom could be added. The lot is a pretty good size. The value of the home is estimated at roughly $1M-$1.15M in its current state. The home is paid off and the taxes on it are only $2700 per year, which I'm sure is crazy low for being in this part of California -- I don't know if the tax situation will change when ownership transfers to my mother -- anyone know?
Zillow's estimate of monthly rent for this home is $3424. What would be the best approach to analyzing this situation to land on a decision to sell this home, or put some equity into it and make it a decent rental, or do some fix and flip work on it?
I want to make the best decision and set up my mom with a secure future for her retirement as she is nearing her 60's, and feel like this is a real opportunity for her to have solid cashflow for the rest of her life. If she were to sell the home, she would be fine, but then it becomes a question of what to do with the cash in this type of market.
Appreciate any insight!!!
