The ones who bought cheaper properties trying to fix up had mixed results with one getting hustled by a contractor and definitely going into the red.

Becoming a LandlordYour house appreciating at 5% annually = $25K/year.Your parents' larger house = $30K/year.Financing the PlanTake out a mortgage on your house to buy your parents' house.If their mortgage rate is lower than today’s rates (6.75%), keep their mortgage and assume it.Why It WorksYour tenants pay the mortgage—not you.Each monthly payment includes ~$300 toward the principal.

Seller is the Agent.Seller bought property in January of 2023 for $730,000Current “As Is” Value : $770,000Target Acquisition Price: $730,000-$780,000 After Repaired Value: $900,000Repair Estimate: $120,000Initial Offer Amount: $715,000Loan Program: Bank Statement Program.Total Estimated Monthly Payments (Principal, Interest, Taxes, and Insurance) $5500/month (based on $770k purchase price)Estimated Gross Yearly Income from Short Term Rental: $160,000 (65% Occupancy, $700 a night| (STR Listing Comparable properties Listing 1 Listing 2 Listing 3)Net Monthly Income after management and taxes: $11,751.25Net Monthly Income after Mortgage Payments: $6251.25 ($75,015) Per YearTotal Cash Investment: $297,000 ($177,000 in down payment and closing costs and $120,000 in repairs)Average Yearly Return on Investment: 25% yearlyAverage increase in property value per year: 5%Average increase in booking revenue per year 7.5%Property Value average after 10 years: $1.5 millionTotal Cash received over 10 years: $1.3 million.Total Equity multiple min over 10 years: 6x total return on $297,000 invested.

My lease has a sublet fee (2 weeks is guest by lease more than 2 weeks in a year is sublet) that is costly enough ($100/night per person which is about what a cheaper hotel is here) that makes sure tenants do not have others move-in without informing us.

. - Otherwise, you'd have to give it to a relative to give it back to you as a "gift" - which is mortgage fraud.- Of course, there's nothing stopping a relative from getting a loan and then gifting those funds to you.Assuming this property is in the City of Detroit, have heard there are several programs to encourage people to buy primary residences in Detroit.

Watching my linens get swapped out for cheaper quality would be rather upsetting to me and I would keep all laundry at the property.

Net post-mortgage: $91,586/year.

Have you refinanced this into a long-term mortgage?

Averaging $1k/mo per bedroom which is now on the cheaper side of things.

I have a robust team of mortgage lenders, title companies and RE attorneys.