But if you are really set on this house and no other, take the proposal to your own accountant and go over the figures. Get a home inspector's report, so you'll have an idea about the condition of the roof, electric system and plumbing, and how much you might expect to pay for repairs in the next few years. What would the house cost you in property taxes, landlord insurance and mortgage payments? How much rent could you receive from your new tenants? If the numbers work out, perhaps the house would carry itself.
Even so, if the sisters' plans should change and they moved out, you'd end up renting to strangers. You'd be absentee landlords, which is always an invitation for trouble.
Instead of buying now, consider offering a modest sum in return for an option to buy the property at a given price within three to five years. That would nail down your right to purchase if and when you wanted, no matter who owned the property.
You'd want your own lawyer's input on the contract, of course, and so would the sisters.
Surviving Spouse Sells
Dear Edith: My father suddenly died December 30, 2006 and my mother sold their home in December 2008. Can she claim Dad's $250,000 capital gains exemption as well as her own? She has purchased a new home elsewhere. Would that purchase offset her capital gain? -- Via e-mail
Answer: Because she sold within two years of your father's death, your mother can use the full, married couple's tax exclusion on her gain. It no longer makes any difference whether a replacement residence is bought or not.
You don't say where your mother lives. Given the current state of the market in most parts of the country, it's nice to know there's some place where one can sell a home and worry about half a million dollars in profit.