I inherited students when acquiring the property.  

.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

For example, in my state PA there is an inheritance tax and many TAX auction properties originate from people passing away and the heir(s) not taking control over the estate and paying those property taxes.

My wife and I recently inherited a home, which we took possession of earlier this year. 

So if you define a motivated seller to be someone that is willing to sell their house below market value (which is the ONLY definition of a motivated seller), you will then realize it is very different from:"A motivated seller is someone dealing with a foreclosure, tax lien, inherited a property". right?

But once they give it to you, you inherit their cost basis and have a taxable gain.

So I would like to get the opinion of some experienced investors.My goal is to buy (3) three to four multifamilies.I inherited a 3 family fully paid off and own my current home.Between the two I have roughly 550-600k in home equity.  

A majority of the sentiment from the listening session on the 18th was in favor of STRs and there were a lot of people who shared personal stories of their rentals or their business which support their life, family, and future retirement of inheritance for their families. 

Tired landlords have been the sellers in most of the situations, but also kids who inherited a probate house, and don’t have the resource to fix it up.  

Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase.