I inherited a property with two tenants who don’t pay rent.

The downside is you would inherit their very low basis.

Our close family friends inherited the father's house, but it needs significant renovations.

Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

Better than inheriting tenants who may already be a problem.

Im currently house hacking a triplex property I bought not too long ago with one inherited tenant who was there when I bought the property. 

- If so, 1031 into something bigger and easier to manage and then when you pass, the inheritor receives your property(s) at a stepped up basis - subject to Inheritance Tax limits.Otherwise, sell one every 1-5 years when you need the cash, so you can plan expenses to offset capital gains.

Purchase price: $140,000 Cash invested: $22,000 Sale price: $180,000 Moratorium expired a few months before closing and I inherited 2 tenants couldn’t get into the property for 3 months!

Hi BiggerPockets community,excited to connect with like-minded individuals who are passionate about real estate investing. A little about me: i’m new to the real estate world and eager to learn everything I can to bui...

When transferring real estate as a gift, it does not receive a step-up basis, as it does when it has been inherited.