It sounds like your friend wants out. If that’s the case, the thing he can probably consider is selling his interest to the other two siblings.If the other two siblings want it they can pay him based on some agreed upon appraised value… If they other two don’t have liquid cash, they can do a refinance to get cash out and deal with the mortgage.
Factors personally I would consider is
1. How well to the siblings get along, when it comes to money things? Red flag is their money habits and outlook are different
2. Are the siblings the decision makers in financial things in their respective household? Siblings might otherwise get along, but sometimes when a spouse is also involved, things get sticky…
3. Is there one particular sibling that wants to live there?
4. Is there one particular sibling that is interested in managing the rental? Or all 3 not really rental “savy”?
I wouldn’t count on Prop 13 being around indefinitely for rental properties imho.
Not sure what me and my sibling will do when our parents pass. We keep telling my parents to spend every dollar they worked hard for since we want none of it. I think we both kinda share the same viewpoint that it’s not the final amount that really matters, it’s the journey we take to getting there. But you know some parents will save every penny and live very frugally. If they don’t manage to spend everything before they pass, i think for convenience we probably will split things between what’s in NorCal versus SoCal, since it’s fairly even in terms of value. NorCal probably has a worth advantage, but don’t really care. I’m done saving for my kid’s major expenses including college and she has years to go for both of hers even though I’m younger… HA!
