The parents owe roughly $40k on the mortgage. 5.

It's a little different but structured properly it beats the work, hassles and uncertainties of flips.

In 1972 the 30 year mortgage interest rate was 7%.

The idea is simple: purchase a property, live in one part, and rent out the rest to offset your mortgage or even generate profit.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Since interest rates are now higher than the mortgage on your current home, you'll want to calculate that monthly difference.SIMPLIFIED Example: current house mortgage interest rate is 3%, balance $250k.

For example the BRRRR strategy worked with many properties 10 years ago when the average mortgage was cheaper than the average rent.

It sounds like you might be in the situation I'm in: buying a vacation home that I plan to use as a STR when I'm not using it so that other people can help pay my mortgage.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

You will need an attorney to properly structure the partnership and you will make sure you do it correctly.