Sell or Rent Investment Property to my parents

[Lee Collins]

I have an investment property, a condo, that my parents would like to live in part of the time.  Outside of the normal non-arm's length transactions issues and risks selling to family members, what are the factors I should think about to decide if I should sell them the property or rent?  My parents are older so inheritance is a factor.

Other factors:
- I've owned the property about 15 years
- property is currently underwater but I have depreciated it over time, so I will have income if I sell
- property is near a vacation spot so could be used as a VRBO when not occupied by my parents

Any thoughts would be much appreciated.