Partnership: Mortgage vs Title

[Isabelle Trepkoski]

Hello,

I will start by saying I have a call into our mortgage lender...

My husband and I are going in on a duplex with my parents who are downsizing. The plan is for my parents to live in half of it for a year while we help fix it up and they look for their retirement home. My parents are going to take out the mortgage as it will be their primary residence and bring the down payment to closing. My husband and I will pay for updates until we hit 50% of down payment and then we will all split the rest of the updates. The plan is for all 4 of us to be on the title(Mom, Dad, Me, and my husband), but only my Mom is taking out the mortgage for more favorable terms and lower down payment. 

Wondering if anyone has been in a partnership where you were on title, but not on mortgage? Did this work out, did it cause a red flag with mortgage company? Is being on the title enough proof for my husband and I to still take deductions on taxes and write off some of the maintenance/capital expenditures on the rented side? If you have been in something similar I would love to hear how you structured the deal and tax strategy? 

Long term plan is to rent out both sides and split returns after reserves have been built up. We will force appreciation with some updates and its currently under rented for the area.