If they weren’t properly screened you could inherit a tenant who actually can’t afford the unit or has a criminal background.

Since all homes need lots of attention, the seller is willing to carry back down amount and I'm planning about going to a commercial lender for the majority of the purchase price; then using cash on hand to renovate.My questions for the tax pros / creative deal makers are:How much of a step up in basis is allowed at time of inheritance for the seller and does it apply to investment properties?

They typically DO NOT pay market price.In whatever structure your family has ownership in the docs usually spell out if someone dies or heirs inherits the interest what the buy out or sell options available are.

But that means you will have inherited the illegal subdivide and may need to cure it one day. 

I have a duplex undercontract, still in the inspection period. I have the tenants signed lease that doesn't allow the to have pitbulls (along with other breeds) on the property. It turns out the tenants in fact have...

They have been there for two decades, and I inherited them when I purchased the property.

Disadvantages, You inherit their depreciated basis in the property both for future cap gain taxes and for depreciation.You inherit possible unknown liabilities lingering out there.

I can still find affordable homes and great returns in South Bend.I found the first property from an inheritance list and the second while driving for dollars.

So many house hack horror stories begin with “my inherited tenants are causing x”.

In a recently purchased property, I inherited a good tenant who is 1 year into a 5-year lease.