Real estate advice

I should have added more to the op. My sister isn't emotionally ready to sell the house. I'm here to support her with that. There is a family member on her husbands side who will be renting it. I do understand your point completely though. The emotional attachment to the house hasn't worn off yet. House is paid for.

Sell your half to her and let her deal with it

I didn't really see a problem with it until you mentioned renting it to a family member.

Where do you and your sister live in relation to the house? Local?

Do you and your sister get along?

Would you like to sell eventually?

Would she like to sell eventually?

Would either of you want to live there?

Who would manage it?

The two most expensive repair items are roofing and air conditioning. Do you have $5-10,000 available for worst case scenario?

Not trying to discourage you or sway you. Just things you should be thinking about.

All of the above advice is true. I'd discuss it with your sister and if you decide to move forward then here's a few things to consider.

1.) Form an LLC. When doing so understand that as a 2 member LLC you'll have to have a CPA create a K-1 document for each of you each year. It'll cost $500+ a year to prepare taxes for the LLC that only holds 1 asset. Just an expense to keep in mind.

2.). Set up a joint checking account for the LLC. Run everything through this account. Save all of the first 3-6 months rent to set aside for major repairs. Then save 1/3 of the rent each month for repairs. I always did 1/3 for repairs and 2/3 to debt until it's paid for. Then 2/3 profit. Over time you can adjust this up or down once you develop a history.

3.). Check on eviction laws in your area. People do have to evict family members which is why the above comments came out.

It does sound like you're doing this out of emotion and not business purposes. I'd seriously consider sitting on the house for 3 months and revisit it with your sister. Make the decision out of a business choice not an emotional choice.

I have several rental properties (LLC) and it's not a bad thing. You can figure one month rent to taxes, one month for insurance, and one month for repairs/upkeep if you are lucky.

I am due to retire in a few years and having $4200 a month in income will be a good thing for me, I do have other income but this should keep me out of savings/IRA/401k for a lot of years.

The way I see it you have 3 options, sell out to your sister, be a landlord with your sister as a partner, or buy your sister out. It's your choice.

Beyond the LLC, I've found that just having family members write down some basic rules for the property and signing it will alleviate a lot of stress and issues with family co-ownership. Maybe things like " we will never rent it for less than $X and if we can't get that, we will sell" and "repairs over $250 require approval of both parties and if we can't agree, we must sell".