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[quote=Anonymous]P.S. You could also structure the sale with seller financing.  That is, your sister could take back a 15-year (or 30- but 15- is better) mortgage at a reasonable interest rate, again, discounted from market rates cause it is family.  Then, every month that your sister lives in the house rent-free, you treat the rent forgiveness as a partial payment on your mortgage.  That is, you send her a check for the monthly payment less the rent due.  At some point, the rent will rise above your mortgage payment, and you'll start paying down the mortgage faster than the amortization schedule calls for.  Or, perhaps her income will have risen to the point that can start paying you the difference between the mortgage payment you owe her and the discounted market rent she owes you.

This approach gives your sister a bit of income to supplement her minimum wage job, and also an incentive to leave the house and find a place with lower rent at some point to increase her monthly income due to the mortgage payment.  Should she choose to do that, you can find a tenant to pay you market rent.

Ofc, you and DH need to come up with the money for repairs up front and assume responsibility for ongoing maintenance, taxes, insurance, etc.  But you benefit from capturing any appreciation over the coming years, reducing your personal income taxes by your current losses -- including the paper "depreciation" loss -- up to the cap for passive business losses, etc.  Eventually, you'll pay off the mortgage and have a nice stream of passive income, and when you die your kids will inherit the house, and probably not have to pay capital gains or estate taxes.
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