Rental Real Estate. Geoffrey owns a residence and two rental properties, all as community property. The appraiser
Question:
Rental Real Estate. Geoffrey owns a residence and two rental properties, all as community property. The appraiser has informed the Estate that 20% fractional discount is appropriate for the properties.
The residence was acquired with community property, has an appraised value of $2,820,000, and is owned by the couple “free and clear”. It is located at 1027 Escalero Avenue, San Mateo, CA 94404.
The first rental property is a ten-unit apartment building. Its address is 547
Fifth Avenue, San Mateo, CA, 94404. The building has been appraised at $4,850,000 as of 11-20-19. The property also secures a first mortgage. The debt is nonrecourse. As of date of death, the balance due on the loan was $471,261, which includes accrued interest in the amount of $155. All the units are rented on month to-month tenancies, and rent is paid at the beginning of each month. Geoffrey is holding security deposits on the property in the amount of $38,000.
The second rental property is a duplex located at 2322 Sunset Drive, Pacifica,
CA, 94044. It has an appraised value of $943,000 on 11-20-19. And it secures a nonrecourse first mortgage in the amount of $981,162. At the time of Geoffrey’s death, both units in the duplex were vacant, as he had planned to remodel them.
Calculate Total gross etate.
Statistics for Business and Economics
ISBN: 978-0321826237
12th edition
Authors: James T. McClave, P. George Benson, Terry T Sincich