I would assume at least $5k-$10k in repairs, even if the property is pristine, especially if you are inheriting tenants. 

My grandmother had left me some inheritance when she passed away, and I utilized every penny of it on the house.

We are Inheriting some tenants who seem great so far. 

I inherited a lease that is 12 years old and has no language about the landlord entering the apartment. 

I inherited some bad tenants to say the least.Month 1: Paid in cashMonth 2: Paid on the 15thMonth 3: Did not pay.Month 4: No signs of paying for September.They are out at the end of the month.

Owner would therefore face a large capital gains penalty upon selling the asset.Would it be possible/legal to execute a master lease option with a buyout that is intended to outlive the seller such that they can have fixed income for the remainder of their life, and such that their children can receive stepped basis by inheriting the asset that is already under contract (which was obviously written to be binding upon successor's and heirs).

I inherited the tenants on the other side who also happen to be excellent neighbors. 

My objective is to build a relationship with an accountant who can point my wife and I in the right directions in order to lessen our tax burden as much as possible. 

Obviously not a concern for the unit you'll occupy, but keep it in mind as you're searching, and maybe consider inheriting existing tenants if you'll find yourself off-peak.

Turn them over within a month, and you're already at $500-600 more in rents than getting the inherited tenants.