With 5X leverage, a 4% long term appreciation becomes a 20% annual returns.

for folks in So cal  I think Vegas is a great choice   1. you can drive there   keep in mind flying to other parts of the country to check on property is going to eat up 1 months rent if you go annually.2.

However, if you inherit it through her estate, you receive a stepped-up basis to its fair market value at that time, reducing tax liability upon sale.Gifting it now has no immediate tax consequences unless its value exceeds the $18,000 annual gift tax exclusion (2024).

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Gross rent multiplier (GRM) A method that divides the purchase price by the gross annual rents when the property is 100% occupied.

Through this journey, I’ve built strong relationships and developed valuable expertise in:Researching micromarkets and identifying comparables, potencial Accurately estimating construction or remodeling costs.Securing fast and reliable financing through partnerships with two top hard money lenders in Texas, offering competitive rates.I’m on this platform to connect with capital partners who are seeking an annual ROI of 12%-15%.

Becoming a LandlordYour house appreciating at 5% annually = $25K/year.Your parents' larger house = $30K/year.Financing the PlanTake out a mortgage on your house to buy your parents' house.If their mortgage rate is lower than today’s rates (6.75%), keep their mortgage and assume it.Why It WorksYour tenants pay the mortgage—not you.Each monthly payment includes ~$300 toward the principal.

I’m open to offering equity in the property along with annual cashflow returns to investors.

If rents go up ONLY LT historical average (4%), NOT post covid averages (post covid was 20%+ annually). 

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.