[poncho-mike]

Hi,

My mother passed away at the age of 83 about three weeks ago, leaving behind me, my brother, and sister. Her passing wasn't unexpected as her health had been in decline for several years. My sister is executor, and her and my brother are moving pretty quickly to liquidate the estate. I live about 3 hours away from the old home place, but my siblings are still local.

I'm not thrilled with the speed at which my siblings are moving to settle the estate. All I will say is that I've done much better than they have and I can understand their excitement in receiving inheritance. I don't even want to discuss opinions on the speed at which this is happening.

There is about 11 acres of land, a fairly new mobile home, about a 45 x 32 garage that needs some repairs, and a number of older mobile homes on the property. Dad rented out mobile homes for many years, but stopped in the early 90s. I've been using a couple of them for sheet metal and parts storage since then.

My mom and dad lived on that property for more than 60 years, and it's the only place I remember living as a child. I knew the day was coming where my mom would pass away and I'd have to either buy out my siblings or move my stuff so they could sell the property. That day has arrived.

The real estate isn't particularly desirable, but it's definitely not a bad location either. The property is just outside the county seat, which is a south-central county location. The area is largely farm community and is dotted with small to medium sized homes. Most of the new development is taking place to the west and south-west of the county. It's unlikely there will be any demand from developers.

I would love to have the old home place. I thought about buying out my brother and sister, fixing the garage and using it for storage, and renting the mobile home. I currently own one rental house, and it's been a royal pain over the years. I know I would have a hard time dealing with a tenant that trashed mom's house, so I would be reluctant to rent it. I also thought about keeping the old home site as a second home.

I'm almost 57, so retirement isn't that far away. I've already been looking around the NC mountains for a place to retire and work on my cars. Buying the old home site would effectively kill the chance of getting a place in the mountains.

I know a lot of you guys on the board are in your 50s and 60s, so I'm curious about how many of you have been in a similar situation and might be able to offer some advice. Has anybody bought their childhood home and made it into a rental? How did it work out for you?

The estate consists of some money and the real estate mentioned, so I could sell a car or two and use my share of the cash to buy my siblings out. It could swing the financials without much difficulty and avoid taking on any additional debt. The other option is to go along with selling the property and use my share of the estate towards a retirement place in the mountains.

Anyway, I'd like to hear your thoughts.

Mike

[PonchoV8]

I compromised my needs and desires to buy a family home, partially so that it would stay in the family. It wasn't the right decision for my hobbies or my desires. Having done that much, I surely wouldn't rent a place like that unless it was the right people who I knew would stay for a long time, and might possibly buy it from me in the future.

But buying it doesn't mean that you can't sell the property off in the future to fund the spot in the mountains that you want.

[fiedlerh]

Not quite like your situation, but when my M-i-L passed away a year and a half ago, the three siblings decided to rent out her townhome. We used a rental agent to screen potential renters and weed out the deadbeats (there were several).

The renters were good and always paid on time and kept the place clean. Siblings split the profit/loss 3 ways. After all the deferred senior citizen taxes and a new sewer line, there was a loss instead of a profit. After the lease was up, everyone decided to put it up for sale. Two siblings are retired and don't want to deal with renters, and we are too busy working.

Renting for a period of time could be an option. It gives you time to do repairs, decide what to do with the stuff you have stored there, and prepare the property for a future sale. It all hinges on finding good renters. After a year, if it is too much of a hassle, put it up for sale or buy them out.

[Jerry H.]

My mother passed 3 years ago, and left her estate to myself and my 2 siblings. It was the only home I had ever known; she had lived there since the late 50's. I was the administrator of her estate, and yes I thought about buying out my siblings and renting out the house, or even moving back there myself. Her place was only 20 minutes away. But in the end I sold it.

I didn't want the hassle of dealing with a tennant. But most of all I think I just wanted a clean break. It's hard enough that my Mon has passed, much less having to deal with my homeplace on a daily basis. And then dealing with jealous siblings. They could possibly think that you didn't pay them enough when you bought them out, even though you paid what they agreed. You can't win. I wouldn't do it; I would just go ahead and sell it and make a clean break.

[poncho-mike]

My sister called me last night and told me the appraisal has already been completed on the property and a price has been set.

I totally wasn't prepared for that to happen so quickly, so I told her I would think about it. If I did buy it, I would offer 6% less than the appraisal since a realtor will charge a 6% fee to sell the property.

[rod cole]

What it appraises at and its worth are two totally different things. I co owned my mothers house for a 2 year period. The agreement was rent it to my cousin and we would split the rent but I would not have to be involved at all. Well that lasted about six months and then I got the calls something needs fixed ect. So in the end I made my sister buy me out when my dad past because I could I was the ecsecuter. A auction is the only way to pay a fair price and not have the others feel like you took them. But they are going to find a way to feel that way any way. Best to divide it up and that way no bitching. Rod

[BOB VIDAN]

Whatever you do and agree to, put it in writing. Don't care how well or not you get along with your siblings, money does stupid things to people.

[zeebo]

rods right. what it appraises for and what its worth are two different things. it could be worth more or less of the appriasal, especially with sentimantal value attached. good cuts of land are hard to come by here in michigan, unless you want to live 100 miles from your job--and yes, make sure everything is in writing like bob says--family and money should not be in the same sentence.

[The Boss]

The problem I see Mike is that being as rural as it is, you may end up loosing your cars & parts to junk thieves. Although it may be tough to do, clear it out, let it go and stick to your mountain home dream. That may prove to be the best option for your family as well.

[buds56]

If it was me, I would buy them out, then you can work at your own pace.
There is an opportunity possible,

You can rent out the trailer at a low rate for security,care taking, and cover taxes and insurance.

Just need to get the right guy (In my case a divorced guy paying child support) and you can keep your parts stored till your ready to sort them.

This is what I have been doing with my extra house which is out in the country and where I keep my cars and garage for over 15 years. It has worked well

Can you divide the property up where the rental trailers are/were? and sell to get some cash back, wells and septics add value to the property.

4-5 acres is enough to take care of when your older.

In several years you can always sell
Good Luck
Bud

[The Champ]

Originally Posted by poncho-mike

I'm almost 57, so retirement isn't that far away. I've already been looking around the NC mountains for a place to retire and work on my cars. Buying the old home site would effectively kill the chance of getting a place in the mountains.

This paragraph speaks volumes to me.

If this is what you REALLY want in retirement, I'd let the old homestead go. Selling it and using your share to aid in obtaining your dream seems to make more sense to me.

You haven't "enjoyed" being a landlord for one property - so why take on a second? If you need some storage - to me it makes more sense to have it closer than 3 hours away.

JMHO

[ho428]

I agree with Jerry. I've had to liquidate several estates over the last few years, yes we have some regrets of things we let go, or let go too quickly without enough thought, but the clean break was the best for us in the long run.

Some years back I bought out my brother for our moms house since I didn't own a home and my brother already did. 12 years and many renovations later I sold it and moved to a bigger place. My brother then wanted half of the money I made off it even though I put 12 years of my money and sweat equity into it. So you can see, it never goes away.

Couple years back I took charge of my FIL's estate and told them I'd do everything I could to maximize the amount we got for it, had a few bumps along the way but in the end everyone was very pleased with the amount we got for the place. Some wanted a quick sell, but I knew by putting in just a little bit of time and money it would drive up the value well over what I put in.
It also gave us time to sort through the stuff, the quick sell would have been a mass dump which will leave you with regrets of lost personal stuff.

[Blue'69]

Work out the details with your siblings. Clear out your parts and store them elsewhere. Best to just take your share of the estate and let it go. Keep your cars and use the proceeds from your share of the estate to buy your mountain home and some car parts!!
Consider it a gift from your parents and enjoy. You seem to be in a comfortable position so why be encumbered by more assets that will need your constant attention. Mountain air and working on cars is where it's at and its definitely where I plan to be in a few years!!
Just my .02.

[marxjunk]

id break away...

when my mom passes..my siblings will be like vultures..think they deserve it all..even though they make my moms life miserable,,,and always have.

my mom asks me all the time what do i want...etc..and i always say nothing..i want nothing

I always tell her to give it to them, let them fight it out etc...i had a great childhood..i have great memories..as i get older, i dont want any hassles...and i dont want to fight over some property my mom has...so...i'm out..but thats me...

i see it all around me...money means more to people than relationships...happens all the time..i'm out...no way..let them have it..leave me alone and let me enjoy the rest of my time with out court battles..seeing who got more..whos is worth more..and on and on..i'm out

[1968firebird455]

"I always tell her to give it to them, let them fight it out etc...i had a great childhood..i have great memories..as i get older, i dont want any hassles...and i dont want to fight over some property my mom has...so...i'm out..but thats me..."

I agree.

Here is a perspective from a younger guy that has seen what my parents have had to go through when my grandparents passed away. Whenever you combine business/money & family your asking for trouble. Even if you buy them out somehow they will still feel like they own a piece of it or you didn't pay enough if your able to sell it for a profit down the road (usually only occurs after extensive work and money has been invested into the property) but if you sell it at a loss I know for a fact nobody is going to be knocking at your door handing you money for half the loss.

I would let the property sell and take your share and live your life the way you planned before this unfortunate circumstance fell in your lap. Look back in your time there with fond memories and a great part of your life instead of having it as another additional task to complicate your daily life.

[GT182]

Mike, you have to speak up and tell them what you think, come to an equal 3 way agreement or they'll walk all over you. And make sure they follow what she has written in her Will. I've been thru that and got the raw end of the deal from my half brother.

[Bob Dillon]

Liquidate the entire estate and buy the place you want. That way, it's over and done with.
No worries, no future hassles, done. It's the best way. I promise.

[David Jones]

Sell.
You sound like you don't want it and storing things 3 hours away makes no sense. To own a part of your past at the expense of what you really want to own in your retirement adds to the reasons NOT to tie up your money.
Want rental property? Use your part of the funds to invest in something closer to you.
Bail.

[eaglesan13]

My mom passes away in May 2012. The home she lived in was purchased by my parents in 1965. It was a wonderful place to grow up, surrounded by cherry orchards and such. It is now in the heart of what is known as the silicone valley. After mom passed, my older brother (her executor) had the house fixed up and sold. I considered purchasing it but it really didn't meet my needs. I had moved away, my children are adults now, and I really didn't need the place, so I decided not to purchase it. None of my siblings wanted the house either. Per mom's instructions, after her passing we all met at the house, drew numbers and began taking turns taking her stuff. It was a blast, it was really funny some of the things that were important to us. One of my brothers got mom's skillet, which she used to cook up many a dinner. We were all jealous, but we laughed. My first pick was a few ceramic toys that had been on someones birthday cake many years ago and had remained on the shelf above the stove ever since. At the end of the day, whatever of value that was left was donated. If it was not of value, it was discarded. As I left the house that day there was joy, but also some sadness over that fact that the family home of 48 years would soon be gone. My brother had the house gutted, repainted, the floors redone, and all necessary repairs done. Mom had wanted us all to meet together at the house one last time before it passed to another owner, so on the weekend before the house transferred, we all "went home." (I'm one of eight kids). I thought it would be very emotional walking through the house, but it was just the opposite. With the house empty, I saw it for what it was, just a house. It's the people and the things acquired over the years that made it a home. I walked away with no regrets for having not purchased it. Mom had a trust, and we had met yearly for many years to discuss it, so there were no disagreements and things proceeded smoothly. Since the house was in silicone valley (Santa Clara), it sold immediately and I received my share on Thanksgiving day. I never think of the house, but I think of my mom every day.

[Doug]

By your use of the term "executor", I conclude that your mother had a will that specifies how the distribution of the assets of the estate (and the debts of the estate) are to be handled. Accordingly, there is not much leeway on what can done other than following what the will says.

Basically, it sounds like the estate is to distributed between 3 parties (you and a brother and a sister). In essence, you already "own" a third of the property in question so to buy out the others means you would only have to come up with only 2/3 of what the sell value of the property is in order to buy out the other's shares. Whatever the sell price of the property is, the executor of the will typically will be eligible to claim 5% or so of that money as her compensation for handling of the estate.

You didn't indicate whether or not your father was deceased. I assume that he is and that leads me to question as to what happened to his share in the property. Did he have a will? What did it provide for? Is it possible that he left an un-administered estate which could lead to title problems, etc.

With your living at quite a distance away from your mother and your siblings living near to her, I am sure that on a day-to-day basis, your brother and sister provided care and services to your mother and you did not. Accordingly, your brother and sister are having thoughts about "we did more for mom than you did so we deserve extra credit, etc, etc".
That typically generates a helluva lot of family frictions and animosity.

Follow Dillon's advice. Follow the will, liquidate the estate and get it settled A.S.A.P.

P.S. I was executor of my mom's will and administrator of my dad's estate. You can't imagine the hassle it takes to do either.