We're having a meeting here in the next 30 minutes or so.........with the main topic being......what to sell so mom can get her dream house?
I've been gathering numbers (me who is number challenged) to show her on paper, how she is really loosing money these days on her rental properties.
Anyone else at this crossroad? Where years of hard work and budgeting to the max and accumulating real estate have come to the spot where it COSTS to keep them. The money she has to pay out each year in property taxes, as well as insurance and repairs doesn't equal what she can bring in with rental income. And, my properties are in the same position now too.
I think she gets it......but I'm never sure these days with mom. So, me, the math whiz (HA) is going to try and lay out the plan where getting her equity out of these properties (she owes nothing on anything in her portfolio) and doing anything else with it, is the better deal.
She wants so badly to gift her 5 grandsons with something when she dies.......I do believe that is the reason she is holding on to the properties. I need to show her she can leave a nicer estate if she isn't chipping away at the equity all the time.
I'm having one of those weeks, where life as I thought I knew it is changing faster than I can imagine. Dreaming of doing nothing at this beach house of moms!!!
How Long to Hold Rental Properties?
September 14th, 2007 at 08:41 pm
September 14th, 2007 at 10:02 pm 1189807337
September 15th, 2007 at 02:29 am 1189823358
September 15th, 2007 at 02:49 am 1189824545
Factor in the ages of her homes, one from around 1890, one built in 1962 and the NEW house built in 1980, there are extreme repairs needed on a couple of them. Roof, electrical system, new plumbing, name it. Not just little things, but BIG things. Things that can off set any income in short order. All her homes are priced about right now, but the numbers just don't add up. It costs to keep the homes, or we are just breaking even. If we sell and take the funds & invest, she gets a regular income, without the landlord bit. We're voting for that route at this point.
It made much more sense when dad was alive, as he did all the maint. on the rentals himself. That made sense, and at that point, the taxes weren't sky high either.
September 15th, 2007 at 03:21 am 1189826506
Speaking from the other side of the inheritance question, sister and I inherited real estate and land, which we sold anyway to be able to get some working capital to fix up the house and grounds. It might well be that grandma would bequeath a gift that the grandsons would have a different opinion about.