We could sell the house..but it is not worth what we paid, so we'd take a significant loss, plus we'd be walking away from a 2.78% mortgage2.

She wants to sell to me.

My husband's parents (55+) are moving to another city (Temecula, CA) and are selling their home in Riverside, CA, valued at $915K.

You receive an updated cost basis. if it was worth 500 k on the day he died you could sell it and not owe any capital gains.

Each strategy has its own set of benefits and drawbacks, as well as potential returns and risks.Buying to Flip for Quick ProfitBenefits:Quick Returns: Flipping properties can potentially yield quick profits, especially in a hot real estate market.Minimal Holding Costs: Since the goal is to sell the property quickly, holding costs such as property taxes and maintenance expenses are minimized.Creative Freedom: Flippers have the freedom to renovate and design the property to maximize its resale value.Drawbacks:Market Volatility: Flipping is highly dependent on market conditions, and a downturn in the market can lead to reduced profits or even losses.Capital Intensive: Flipping often requires significant upfront capital for purchasing, renovating, and holding the property until it sells.Income Tax Implications: Profits from flipping are typically taxed as short-term capital gains, which may result in higher tax liabilities.Buying for Rental Income and Long-Term InvestmentAdvantages:Steady Cash Flow: Rental properties can provide a consistent stream of income through monthly rent payments.Appreciation Potential: Over time, rental properties have the potential to appreciate in value, providing long-term wealth accumulation.Tax Benefits: Rental property owners may benefit from tax deductions on mortgage interest, property taxes, and depreciation.Challenges:Tenant Management: Dealing with tenants, maintenance, and property management can be time-consuming and requires effective management skills.Market Risks: Rental income may be affected by market fluctuations and changes in rental demand.Liquidity: Unlike flipping, rental properties may not offer immediate liquidity, as selling a property can take time and incur transaction costs.Comparing Potential Returns and RisksBoth strategies offer the potential for attractive returns, but they come with different levels of risk.

The Step Up rule would also allow for you guys to avoid paying taxes on the bulk of the equity that was gained by the home as it is reassessed at the time of death of the owner and a new value floor is set should you guys decide to sell.

I have a business selling items on their and it can be a pain sometimes 

The initial plan was to build the portfolios equity until I could sell off the whole thing and get i to a 12 unit or bigger in the Tampa Bay area.  

What size are the new construction comps that are selling for $500k-$700k.A couple comments:1.

Most people who lose money on RE did so because they were forced to sell.