Hello /biz/
This is the first time I’ve ever posted here. I wanted to ask for y’all for advice.
I “own” a house between me and my sister. It was a compromise between my parents when they divorced that me and my sister would receive split ownership after the house was paid off.
Last year it was and that’s when the problems began. My sister wants to sell immediently, our neighbor which has an identical model sold for about 300,000 but theres no guarantee we would get the same offer. At the very least I’m thinking maybe 150-200 thousand.

Essentially the problem is that I don’t want to sell. I want to fix which we were quoted as to 100,000 (plus a repaint and reflooring because my mother had horrible taste)and rent the place. I think it would be a good safety net if something were to happen to either of us but my sister doesn’t see it that way.
She wants to sell it and use her cut to downsize and get another mortgage with her boyfriend.
Leaving me with my cut and nothing else after I graduate college.

I’m terrified for the future. I don’t know how the market will move I don’t know how my health will be or if something might happen to our father. I enjoy the security of owning a house but shes demanding that if I keep the house I will have to give her half the value and let her be on her way.
That means maybe 200,000 dollars to pay her out and repair the place.

This place is a nightmare for our otherwise good relationship.

She is currently living here and hates the place. Both on an emotional and financial level because she’s been footing the cost of the place along with our father. It was the house we were supposed to be a forever happy family in and shes very emotionally distant from it.
I think shes letting her feelings dictate her decision and forcing the two of us to become life renters because of it.

What should I do?

The mess in the pic is because she hates the house and never cleans the place. Half the reason it needs so much repairs is because she let it get bad out of spite and hatred for the house.
But what’s done is done.

>>60553172 (OP)
Have you asked her this yourself that you want to rent the place out and maintain it for passive income? My sister is also bad with money but isnt a total bitch. Its totally meniacle wanting to sell the house and "downsize" when shes just going to use the left over money to go on vacations or use it as a safety net. Lifestyle habits will eat away at that 150k really quickly. As long as you have an equal share of the house i dont believe she can usurp you unless shes petty.

Draw out a 10 year plan and explain the difference between selling now, and renting it out to supplement her down payment over those 10 years. I would seriously talk with an attorney before she gets any bright ideas if she refuses.

>>60553172 (OP)
Also you have to factor in how long its going to sit on the market, operating and closing costs, most likely letting a realtor handle this for you. Fees upon fees.

>>60553172 (OP)
>be Op
>have a strong opinion about something
>be unsure if he should trust his own opinion

get your testosterone levels checked /thread

>>60553193
We talk about it but we always end up fighting. She despises the place and refuses to back down.
I actually don’t know much about renting or anything I’m only 21 this is the first time I’ve ever had this much money or anything close to this value. I just understand that having a paid off house is very difficult and rare especially at our age and I believe that selling would be a tragedy if only I could explain to her.
>>60553196
I hadn’t considered that but I think the plan is to sell out to one of those giant realty companies like black rock. If not I’ll be sure to bring that up because that’s a good point.
>>60553204
I’m not confident cause I’m only 21 this is my first major decision I believe I’m right but I’m not stupid enough to think I’m infallible and I can’t be wrong. I’m also not educated enough to articulate my point to her and I was just asking for advice and reasonings as to why selling would be bad or maybe even some points on why selling might be good for us and Im being stupid.

>>60553172 (OP)
>That means maybe 200,000 dollars to pay her out and repair the place.
time to man up and just buy her out and keep the house.
200K is worth it if it means never having to hear your sister's shrill voice or clean up after her messes

>>60553231
Nah dont believe the zoomers that buying out a house is impossible. I would definitely agree to have the house valuated by a professional on its worth then work your way backwards from there. Seriously speak to an attorney about your possible avenue of approach. If you are able to get 300k after all operating costs and you split it, thatll be 150k in liquid and after 10 years being put into an S&P500 or BTC youll be able to afford another one.

If you rent out the place over 20 years youll make back over 350k. If you take the buyout for 100 to 150k and only put it into stock or crypto youd have 450k but no house.

With my preference I would rent it out for a few years as a transition period to cover the costs of mortgaging a new home. If your sister was smart she would want to rent it out as well for passive income. Using the profits of renting to directly pay for your own dwelling, except in 20 years after renting youll have two houses you can sell

>>60553231
Youre also 21. So considering your age it might make sense to cash it out and let it sit in stocks or crypto. 10% guaranteed YoY vs maintaining and renting out the place. Much more math than im willing to do here.

>>60553231
did you sister ever get stuck in the dryer?

>>60553255
First thanks for the advice I don’t want to sound unappreciative because I am thankful to be heard out.
The idea of selling and reinvesting is nice but I have to think about living expenses and what I’m gonna do for housing in the meanwhile. I also never considered that it would take 20+ years to make back the money I’d lose from keeping the house… that is pretty daunting. All really good points to consider. I’ve never had enough money to invest in anything so if we do sell I don’t think I’ll have the expertise to double it within 10 years.
>>60553263
That’s a good point. The calculations of repairs and the cost to maintain a the property are hard to calculate because life can decide to just throw a hurricane at us or insurance can screw us at any moment. How reliable is investing 150k into a diverse portfolio do you think it’s a good safety net… at the lower end maybe 75k… would you feel safe with that?
>>60553265
I think she’s ugly but she has a nice boyfriend and gets complimented all the time but if you see how she lives youd be turned off too…

This nigga really lives in the same house that his sister gets three-hole fucked in nightly.
Just wait her out, she's never gonna figure out how to get a lawyer so when you can afford to buy her out do so.

>>60553172 (OP)
Your sister is correct

You should sell, pocket the cash, and invest elsewhere

Real Estate is for investing other people's money, not yours.

You already are planning on spending 100k on the place where you're not going to get anywhere close to a ROI, you want to contract the work out, and you have absolutely zero knowledge of what it's like being a landlord. On top of that, you want to be a landlord for poor people, who are the worst tenants out there.

You can take your share of the house and throw it into a treasury bill and get checks stress-free. You are the one with the emotional attachment to the house. A house is simply a place to store your items.

>I don’t want to sell. I want to fix which we were quoted as to 100,000 (plus a repaint and reflooring because my mother had horrible taste)and rent the place

lmao, get rid of that financial blackhole asap you dont have the expertise to manage it and thats ok just get rid of it before you ruin your life

>>60553193
>meniacle
Are you actually going to listen to anything this idiot says?

>>60553172 (OP)
just buy the part yourself? don't listen to the rentcucks especially if you're american as you'll be paying 1k a month minimum there

>>60553180
>mess
What mess?
>>60553172 (OP)
Sell it, take your money and put it in safe stocks or etfs. Maybe some bitcoin or crypto but sounds like you want to play it safe. You currently are wanting to use the as an investment property whilst forcing your sister to assume half the liability, which she understandably doesn't want to do. So take your money and invest it wisely elsewhere and let her do her thing. Your relationship with her is worth more and the housing market is not the only place to make money.

>>60553442
lel true look up scuffed realtor OP

>>60553172 (OP)
>What should I do?
Sell it and use the proceeds to buy property you want. You are making it super-complicated.

OP is going to fix up the house so some rentoids can come and destroy it Kek

Just sell the house, take your split, and go invest or buy a house elsewhere

Your sister is unironcally right, you’re trying to LARP as a landlord at 21, it’s cringe

>>60553172 (OP)
A few things here, OP:

First off, it will depend on where you are, but in most places one joint owner can force the sale of a property. There may be some get-out if you were living there, but as she's the one who's resident and you're the absentee owner I doubt any court is going to side with you.

Secondly, if you end up going to court, or even just getting legal advice, then the only people who win will be the lawyers. They will just encourage conflict and drain you for everything you've got.

Thirdly, this will destroy your relationship with your sister, and possibly other family members. You can't force someone into an investment they don't want to be a part of. Even if you can somehow persuade her in the short term she's going to be a shitty and unwilling business partner. Honestly, avoid sharing business interests with family if you can help it, it adds all kinds of headaches. I'm stuck in that situation and I'm basically estranged from my sister, and it puts a lot of additional strain on my relationship with my parents. Don't do it.

As a final point, and perhaps the most important one, landlordism is a fucking hassle. Yes, on the surface it looks like money for nothing, but it really isn't. There are a lot of costs and work involved. You find yourself having to spend lots of time arranging or doing repairs which you have to drop everything to prioritise, you end up needing to pay large bills out of pocket which you may not have the cash lying around to cover, tenants can be shitheads, or fail to pay rent on time, or wreck the place and you have very little recourse other than a drawn out and expensive legal process. To add to all of that, the asset is horrendously illiquid and a fucking ballache to sell. By comparison you can stick your money into the market, tax-sheltered to some degree, and make similar or better returns with zero effort, and if you need to cash out some or all of it you can do so almost instantly at a transparent price.

>>60553654
>>60553451
>>60553442
>>60553429
Thanks for the advice.
I figured I wasn’t ready to be a landlord but I was mostly looking at the property as a safety net to fall back on if anything happened. Looking at your advice I think I’d rather be a renter with 100k than a landlord 200k in the hole.
Guess I was just scared I’d never really own a home again and worried I’d be stuck mortgaging a house for 20+ years like my folks had to… and then not even getting to live in that house cause of some bullshit like a divorce.
I’m gonna apologize to my sister but ask her to stop fucking ruining the house further so we can get a decent price.
I hope I’m making the right decision but if anyone else has any more advice I’ll still check back on for a while.

>>60554422
You dont have a choice in the matter, 50% is your sisters and shes not signing going to take on debt to fix the house up so you can play landlord

>>60554422
Don't spend a fortune on it, but do make sure you give the place a good clean and a coat of paint before you try to sell it. Try to fix anything which looks obviously bad or shabby, but don't go doing shit like spending a fortune putting in a new kitchen and bathrooms.

Oh, and if you do put your money into the markets, don't gamble it away like some degenerate. Keep most of it is some kind of steady market tracker at first, keep a small proportion aside for any riskier plays you want to make. Don't FOMO into some overbought stock, there will always be other opportunities.

>>60553172 (OP)
Sister is going to be the reason you don't WAGMI so take control of it now before shgit gets worse.

Common sense is not going to work with her only facts.

So:
- Apply for a HELOC loan.
- Bank is going to evaluate the house and assess worth
- It will cost you $500 - $1500 to get this report
- Make sure your sister is not there when assessor arrives and let him know you are trying to get $300k. You gotta compromise too, so if you want $200 and she wants $400 then bank on $300k. Ultimately you got the house for free so it's all a big win gfor you.
- Use assessor report to convince sister on the $300 win then offer to pay her $150k which you will get as a result of taking a loan against the house on the condition that she signs over ownership to you.

150k is a fucking good deal considering the costs of selling a house, which are about 10% (agents, title, blah), so you probs have about 5% more that you can use to push her downwards.

Good luck OP

>>60554437
Don’t project your frustrations with your living situation onto me dude. I wanted to keep the house and rent it to fall back if things get bad not to start a rental property empire. It ain’t my fault the economy sucks.
>>60554760
Figured. I think I can spend a summer and 10k fixing the place up. For sure a new coat of white paint. Gonna just tear out the floors and remove the island (it’s rotted) big stuff like the AC and pavement I’ll leave alone.
Thanks for the advice dude.
>>60554954
I don’t think I understand enough of what you said to do anything about it but I’ll look up that HELOC things and check it out. But also I don’t hate my sister and I don’t want to screw her over. Shes a selfish bitch sometimes but shes still my sister and as much as I’m scared of being homeless I wish her the best.

A house is a liability more than it is an asset.

>>60557291
So you’re going to be going into 6 figures on the house to fix it up and not even live in it? So your idea of a “back up” is to be in massive debt for a property you’re also having to maintain and pay property taxes on?

This doesn’t sound like a safety net at all. It would only be a safety net if you weren’t going to touch it and live in it without spending anything.

You have 3 options and only 1 of them is a true safety net, the other 2 options are taking risk on.

get the house valuated and buy your sister out and live in the house. its a house at half price sounds good to me

>>60557799 and get some tools and man up, there are youtube videos on how to fix everything

>>60553180
She doesn't clean because she is an immature slob, not because she hates the place. Plenty of people can keep a cheap home clean

>>60553172 (OP)
You shop at Aldi and eat candied tomato paste. Grow up and fix your diet. If your sister doesn't want to live there or want the house either buy her out or sell and move on. I get tye emotional attachment, so only you can make that decision. But financially speaking it sounds like you should sell and invest in something with the money. Have you heard of Bitcoin?

>>60553263
S&p is no lt a 10% guarantee year over year by any means. You coild throw it in and have no growth for 3 years if you are unlucky.

>>60553276
Ya bro, do the math, renting kinda sucks. And rentoids are going to trash your house, it's not theirs. Rarely do renters take good care of a place by any stretch. Long term, if you can hold multiple rentals, you might make decent money, but to me, the headache, maintenance and low return are hardly worth it these days in most cases. There are better things to invest cash in.

>>60557841
people who invested in the S&P in 2000 had to wait until 2013 until they were up any money

>be me
>come into thread
>see wall of text
>don't read any of it at all
>write this comment

>>60553180
it doesn’t look messy to me

>>60553172 (OP)
Let it go and move on. Sell the house and go buy a smaller one to rent out.

>>60553451
This. Sounds like a potential replay of your parents relationship. Be better.