Am I Taking Advantage of Family Members?

[Ibrahim Yamini]

Right now, my two nephews live with me and my wife.  They are both 18 -19 years old and we are charging them rent because they both have jobs.  That is not what this post is about, just setting the stage.

As I'm getting my real estate business started, I thought about asking my nephews if they want to be tenants in my second property.  They plan on staying in Arizona as of right now and will go to college as they can afford it.  I am very against student loans.  This will be in a couple years or so and if they dont want to, thats ok.  I just wanted to provide them an opportunity. 

They wouldn't have any ownership in the property and if they move out, I will rent to other tenants to maintain cashflow.  I would go as low as I can for their rent, but for the most part it will be fair market value and cap ex, vacancy etc. costs included 

My plan is to deed it to them once I have a few other properties generating cashflow as well so they can have ownership of their own property.  My perception is that they can assist in boosting my first rental that will eventually be theirs someday.

Because Im getting cashflow from my nephews, Ill be able to use the equity to buy my 3rd property in a decent timeframe.

My wife says that I only brought that up to help myself and my business.  The truth is yes and no.  Yes I do want my business to succeed so that my nephews can have their own property free and clear.  

No this is not just for me.  They come from a cycle of poverty that I'm trying to break.  I can advertise for regular tenants, but they can help the business succeed faster if they are interested in being the first tenants.

What do you guys think?. Im trying to look at it from an impersonal business perspective