Ideas on Potential partnership with father-in-law?

[Charles Jones]

My father is law (let's call him FIL) is retired, owns his home free and clear, wants to downsize, and eventually would like his estate to go to his only child (my wife). Get likes the idea of moving into a condo or an apartment. He likes the idea of us buying his home and renting it, basically do he can have nothing to do with the details. His home is valued at approximately $475k and would rent for $2400. It's in Ashland, Oregon (a very desirable community) in a very desirable neighborhood. The interior and landscaping are dated and could be updated to increase the home's value to the neighborhood median (close to $600k). Here are my ideas: 1) move him into an apartment/condo 2) buy the house as a purchase option 3) renovate the home 4) Sell the home 5) buy a multifamily property in partnership with the father in law with the all the equity generated from selling his house. (I do not believe that FIL will be very interested in using the proceeds as leverage for purchasing a larger property, but is more interested in a duplex/triplex of similar value). 6) the wife and I would co-own with FIL, but actively manage the property Questions: Does this sound like a good approach? Does it need tweaking? Would it be fair for FIL to be a 50% owner with the wife and I owning 50%? Would this be beneficial for the family regarding estate taxes (FIL is in very good health and not foreseen to have many health issues in the next decide) We welcome your thoughts and ideas on how we can make the most of this situation and arrangement. Thank you in advance.