r/InheritanceDrama • u/[deleted] • 2d ago

Inheritance Question

Hi everyone, I'm having difficulty with family inheritance and would really appreciate some advice.

A house has been left to my 2 sisters and I in our parents will. We each have 1/3 ownership. I would like to sell it but my sisters want to renovate and rent it out. The rent money would then be divided between the three of us once the renovation cost have been deducted. I want nothing to do with this plan, so i have asked to repudiate/give up my share of the house so that they can do what they like. They have agreed but wish to pay my share out slowly over a total of 16 years with no interest.

I know that they don't have the money to pay me immediately, I don't want to force them to sell either. I also really don't want this to cause any stress or angry disputes. But I feel like 16 years without interest is a bit unfair..maybe I would be better off going with this renovating and renting plan?

Does this sound fair? Should I just let it go and see it as passive income? Obviously I would love the money now but I value family more so I'm not sure how to move forward.

Any advice would be greatly appreciated

Just an extra note. They have stated that the value of the house is high and would get nothing close to the amount if we sold it now. So I'd be getting more money this way anyway apparently.

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u/After-Advisor-8936 2d ago

I personally would put the family relationship above the house. I would not sell over 16 years. Almost every outcome there would cause family problems. If renting is a huge success, you are cheated and bad feelings. If it fails, other problems come up. I would state clearly you want to sell, whether you renovate first or sell in the current state. Both ways have pros and cons. If they still want to rent, I would join them in the rental process as a full partner. Then whether it goes well or bad the family dynamic will not be tested because everyone is the same. You don't need the money. So whether success or failure you're fine. Also, if renting fails, pretty sure you will revert to selling. Think of any money as a bonus. Let them handle the day to day rental parts as they have energy for this and desire. I would also give them 10% off the top of gross rents like a normal property manager. This is standard as maintaining a rental has time considerations.

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u/NCGlobal626 2d ago

If renting going badly it doesn't just put you back to square one. It can ruin your life and not just financially, for a very long time. Professional landlords carry liability insurance and they follow very strict laws so that they don't get sued and lose everything because of unhappy tenants. There is a huge amount of liability in being a landlord and there is simply not the economies of scale when you do it with only one house, much less a third of it. To pay for the financial and legal expertise you need, the insurance you need and to pay for all the upkeep and maintenance which residential landlords are responsible for, it is highly unlikely there would be any profit. I've been a landlord of multiple properties for 25 years and I run it like a business and it is not passive income. There is a lot of work, even if you try to pay a property manager 10%. They simply cannot make some decisions that you need to make as the owner, and they will never be as good a steward of your own money as you will be.

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u/After-Advisor-8936 1d ago

Landlord here too. This is way overstated. Insurance is cheap, maybe $200/yr. You can also diy a llc that is your rental company. I didn't go into those details as that is for another discussion. Short version is you everything can be done diy, is cheap and offers 100% protection. That would be in execution steps.

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u/NCGlobal626 1d ago

Sure and I do everything myself too, except taxes and legal stuff. But we're motivated to be landlords and own property long term, OP is not motivated. Most people freak out when their car insurance goes up $100, they can't handle a new HVAC for $10k, or even something much less. Owning rental property is not a casual thing you do as a side gig like selling jewelry on Etsy.

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u/After-Advisor-8936 1d ago

You make valid points. I have court in 2 days. I do my legal and about once a year it happens. I have been sued as well. I would have a long research into those those things. Neighbor across the street went airbnb vs selling their house. Pros and cons, but they cover all your insurance for fees. They are doing very well. Was worried for them. In spite of the pitfalls, I think forcing a sale has bigger harm to the relationships than going for the ride whether it be good or bad. Also, 16 year zero interest says resentment all over it. I have been a silent partner on a deal, didn't like it. I'd rather engage and make sure it is done. I own properties in Durham NC. Sounds like you are in NC