BRRRR strategy with live in family

[Robert Shelton]

This is my first post so please feel free to yell at me if my scenario has been covered. Looking for feedback on my BRRRR plan for my next project. Background, finished first flip and it's about to go on market...should do very well. Already looking at next purchase and and have found a couple properties I like. My mother and father live with us in our primary residence and have $0 w2 income, father soc. sec. disabled, mother not yet collecting social security benefits. I would like to purchase next property all cash (my money) with my mother on title then complete the BRRRR and take my initial and rehab investment (maybe some extra cash) out with a 70-75%LTV mortgage. I calculate a good positive cash flow and figure the income coming into the household through my parents could save thousands in taxes while buoying my parents future financial success, especially if we sell our primary home at retirement and they live on their own again. I understand there are a ton of variables which might apply to this scenario but I would love to hear the pitfalls or benefits of this plan as you all see it. As a side note my parents are not "cash poor" and mother has shown an interest in investing in real estate instead of the poor performing investments they currently own. This would be an opportunity for her to get her feet wet with little risk.