@Joe Hammel An old friend who I haven't seen in 20+ years inherited a home.

The ideal situation is you inherit it after they pass tax free with the new higher basis.

I inherited a tenant in the SFH and am working on putting two more tenants in the other two ADUs in the back.

Owner inherited the property, terrible previous property manager who was taking advantage of her, she stated she would be unable to afford the property taxes.  

The children of Elizabeth Holmes probably thought they would inherit Theranos and it didn't last past well their birth! 

In Texas, it’s almost a given that when you buy a property, especially a duplex, you’ll inherit tenants along with it.

My relative has inherited these properties and does not want to deal with being a landlord.

@JD Martin - FYI, she was an inherited tenant when i acquired the building and had always paid rent.

Make sure you keep records of the expenses as it will most likely add to the cost basis of your property when you go to rent it, increasing depreciation and lessening income.

Also any losses from Y will flow into Parent Holding X for tax purposes and such losses will be adjusted towards active income.7) Use a revocable trust to replace us in the ownership chain to avoid probate issues and easy inheritance to our kids.