Should I Kick Family Members Out of the House I Inherited?

A caller named Megan describes inheriting a rental property with her two sisters after their mother's recent death, following their father's passing 15 years earlier. Cousins (a cousin and her husband) occupy the four-bedroom house under a five-year rent-free lease arranged with their late mother, covering only upkeep, utilities, and property taxes; three years remain. Megan's current 750-square-foot, two-bedroom home feels too cramped with one baby and another on the way, prompting her desire to buy out her sisters and move in while renting her house as a duplex to eliminate her $50,000 mortgage.

Current Plans and Financial Logic

Megan and her sisters initially agreed the cousins could stay if it costs nothing, but her sisters want her to buy them out. Her strategy leverages the duplex rental income—potentially $350 to $400 monthly after payoff—to cover costs without a mortgage. This would enable buying out sisters for the larger inherited house. The bottleneck arises from the cousins' indecision: they discussed leaving but now waver, creating uncertainty. If Megan buys another house first and cousins depart early, she might not qualify financially to buy out her sisters later, as lenders assess current housing.