All Forum Posts by: Robert Wood

Double check with a tax adviser but here are my initial thoughts:

1. You may not be taxed on it. Sometimes inheriting properties are not taxed based on the value of when you inherited it. For example, if it is worth $200,000 today and you sell it two years later for $250,000, then it is the $50K that would be taxed. Because you put work into it, talk to a tax advisor about using that as a deduction towards the taxable income.

2. Why not turn this into a rental? You can do a cash out refi and then use that money to buy others. But this way you can get a tenant in there now and then you can do a cash out for as much money as it financially makes sense to do.

3. Talk to a tax adviser about using it as a rental and then sell it using a 1031 exchange. The length of time it has to be a rental in order to do a 1031 isn't defined last I checked but it is all about the intention.