[quote=Hobie]Old man did set aside $30k cash tied to house as he was thinking the kids would make it a rental. ( suggests, maybe, the kids don’t have enough cashflow )
No rental savvy. Also, not huge interest in becoming landlords. Good point re sibling issues. Including emotional attachment to home they grew up in. So many Chiefs..
I was fixated on not loosing the tax base. But these people issues do outweigh the financial side.
I think the only 2 realistic options is for one the them to buy out the others or just sell it outright.[/quote]
I’ve had so many stories about once the spouse is involved things get really dicey. So that definitely is a factor also. Anytime there’s a split asset, it’s tricky unless the siblings are the primary financial decision maker in the household. Other things to consider is when a house gets rented and split 3 ways, maintenance costs also should be split 3 ways. Are all 3 prepared for that, and are 3 spouses ok with that, especially if all 3 are not in the same economic standing wrto each other (one house is a 80k/year household versus another is a 300k/year household)…Because if unforeseen expenses come up, are all 3 households able to evenly split the cost of upkeep? It’s trickier than say splitting a IRA/401k/Roth up, because there’s no ongoing upkeep costs with maintaining those assets.
For instance, I love my sis, and we share very similar financial backgrounds (though she’s definitely a bigger spender than me). But my brother in law, which I totally like, is simply in a different planet when it comes to money. Granted he’s in sales and makes a shitload of more money than me, his burnrate is also much higher. Not sure how that would work out if we had to share an investment property. So when it comes to that, it’s probably better we split things in whole and sell what we can’t split or one side buys the other side out if the other side wants to keep.
I won’t even talk about the possibility of one sibling or spouse of a sibling backstabbing the other sibling’s household, which I’ve seen happen too.
