Taking over retired parent's house and use it as a rental

[Thien Hoang]

Hi All,

I'm looking for advices on the legality of taking over my parent's mortgage and house. Then use it to rent out to my parents. Just wondering if there's any benefit to that. Currently I co-own the house, but would like to remove their name from the mortgage and deed. I do not want to go through a buy/sell process, but instead re-finance the house. The house is north of Boston, MA.

To my simple mind, the benefits are as follow:

1) Help with my tax deduction, since I own a rental property.

2) My parents are working class folks and they really do not have much saved up for retirement. Social security isn't much, enough for food and bills. I'm certain within the next 5 years their retirement fund will run out. By doing this, they may be eligible for government assistance; such as medicaid.

Any feedback would be greatly appreciated.