You won’t be able to keep a furnace or Ac unit in there learn from someone who has already been through it I inherited a rental there during the process of me obtaining it literally everything was stolen out of it.

@Jonathan McEachron You have no choice but to wait for the house to go thru probate and theres no guarantee that who inherits it even wants to sell it.

Any way to shift this to Capital Gain to lessen the tax I pay?

My husband and I moved into the first floor and inherited a tenant on the second floor.

You would call the contractor and discuss the situation with them...... they didn't clean up after the work and "may" have broken something while doing the work.If they won't "make it right", then you decide if you want to inherit that responsibility.

You also could be liable for inheritance tax. 

Many people buy or inherit investment property and as long as the rent is higher than the mortgage, they don't think much about it.

I made contact with this person, and she said she did in fact inherit the house and she has been the one paying taxes on it.

@Brian Engstrom you can get a couple now in Champaign and Bloomington that are hitting over that 1% rule that would eliminate/lessen your housing expense.

The fact that they are acting like this tells you that you actually picked the right tenants to have move out....if you had inherited AND kept them as tenants they sound like they would have been headaches to deal with.