PachalAUTHOR · CONSULTANT · SPEAKER · COACH · INVESTORSubject2Institute.comGood post, very touchy situation.  

I've been working in software consulting services for over 15 years and it's kind of disheartening that I haven't been able to figure it out, but I've got other things to worry about (like how to get a few more properties so i don't have to worry about buggie tech crap anymore :) ).

I have over a decade of experience in strategy consulting and in real estate underwriting for new acquisitions and ground up developments.

Its a great idea, but you will need to consult the township in order to understand their requirements for liveable space.

This is an example of private lending which is different than the IRA owning real estate and does not trigger UDFI/UBIT tax.

For example, you could create a weighted structure where a percentage of profits is based on cash contributions, and another portion compensates for rehab or management efforts.Rent Payments and Tax-Free Profits:If you structure it as an owner-occupied property, the rent you pay could be shared proportionally, but tax-free gains on resale may only apply to your share, as you’d be the owner-occupant.

I would also consult Airbnb/VRBO in guest mode to see how competition is doing. 

If you're going to do it alone, make sure you your due diligence: estoppels, inspection, review, consult with a local attorney familiar with the local regulations, etc. and good luck.

You can consult with your Realtor to create this contract and make sure that it conforms to the laws of your city/state.

Over the past decade, I’ve built and managed purpose-driven homes in CA that serve communities while generating stable, long-term cash flow.In addition to running care homes, I also consult with aspiring care home owners across multiple states, including Texas, Arizona, and Michigan (Detroit area).