Renting a Duplex with parents, is this a good plan?

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I'll be the contrarian.If you have good experience living that close to them and think you can all get along, seems like a good option. You will be sacrificing getting on with your real estate experience and holdings, but would be doing a good thing for aging parents and will have a good asset paid down and ready when you are both ready for other living arrangements. You may not get landlording experience but you'll get maintenance, financing, and paperwork experience.I think the discussion points in your head and with them are around what kind of improvements they would need or desire (if you have to make it elderly accessible that could be a selling point for the next tenants, but what if they want something that will cause you more upkeep in the future?) and how it looks if you or they want to move out before the other (with you as owner, you cannot discriminate when you place new neighbors for them).Still use a rental agreement, and give both parties an easy out if it isn't working out. If the property pencils out with traditional renters in all units, I wouldn't dismiss it too fast.

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I am in the minority here, but I think it's a good idea. You are new to investing. This would be a chance to gain some experience in REI, plus it is a win-win situation for your parents and yourself. It is hard for young people (myself included) to get into the investing world without any experience. Your parents already own a home, and you currently live with them, you seem close to them and you know better than anyone else what their financial situation is like. Obviously a renters agreement should be signed, and you can build equity and your portfolio while living there and helping your parents out! Good Luck!

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We've had success renting to family. My brother lives in one of our 8-plex apartments. The key is we make the rental agreement for him the same as we do for our other tenants. He doesn't pay lower rent or get any special privileges. We enforce the terms of the rental agreement the same way too. If he messed up and we needed to evict him, I have no doubt we could follow through. From the start we knew his character better than that of our other tenants, so that was a plus. It's a win-win for us!It could work for you too. Make sure to check with your tax professional about ramifications of renting a unit below market value before you decide to do that. You can certainly gain real estate investor experience from this. The key is to have open and honest communication from the start. Establish and maintain a proper rental agreement. Give your parents the respect they deserve and be a good landlord regardless of who is living in your units.Also, some good points made by @Michele Fischer, as you may want to invest in modifications to make the unit more accessible for your parents as they age. We make modifications for all of our elderly tenants as their mobility needs change. For a start, this usually means replacing a low toilet with one that is at chair height and adding safety grab bars to the bathroom/shower.

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All of the comments about not renting to family is the right business advice in the vast majority of circumstances, although I do agree with @michele fischer too. This sounds like a close family matter that isn't really about the best business decision. This is an opportunity for you to help your parents and your parents are functional people who maintain their own residence now. That's very different that "renting" to dysfunctional family members who are unable to meet their housing needs on their own.I consider the fact that I have a very close relative who lives in one of my properties part of my success. Their rent is below market and I still get all of the tax benefits of any other property in my portfolio. Having a property in my portfolio that isn't a high profit property is something that happens for lots of reasons. Having a low performer in your portfolio for the benefit of your parents, from what you've described above, is priceless.

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There was a son on here a month or so ago that had to evict his parents after a year and a half of not receiving rent. You might try searching "I had to evict my parents". The grief that he had to go thru. My number one rule is I don't rent to friends or family. I think you need to ask yourself "can I make the payments if my parents can't ever pay me rent"? If you can't comfortably afford to make the payment yourself, I wouldn't rent to them. I don't want to seem cold or callous because if my parents were alive I would do anything for them.

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No piece of paper can prevent hurt feelings if the situation turns bad. You really gonna evict them?

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Brandt Smith I work in Lafayette, but I would love to house hack in west Lafayette, so I could enjoy the campus!

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@Ty Monroe never, never, never do business with family. It never turns out well. How can you evict them when they don't pay? What if they start short paying? It can only cause problems.On a different note: what part of Layayette? I grew up in W Lafayette....

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You guys are all making very valid points! I currently live with them now, and it works out well (even though we all live in a single family home) but I have considered, what happens when the tables are turned and it's my parents living under me (even In a multifamily), and that is probably a whole different situation, especially when there is paperwork involved, thanks for the quick feedback everyone!

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Just found the thread on the son who evicted his parents. "My first rental, turned into my first eviction :( " You might want to read thru the thread to get some insight.