Moreover, it allows you to set the terms of the lease agreement according to your preferences, which can help prevent misunderstandings and disputes in the future. 

With an average monthly profit of about $1,175 after expenses, it’s proving to be a strong investment.If your parents sell their home and want to move in, you’d need to weigh the trade-offs—losing that steady revenue vs. the stability of a long-term tenant.

@David Matarazzo  Did either of you move forward with them for property loans?

I would also consider your long term plan.

Assuming these are for short-term loans, such as for flips, @Keith Groshans, you could do what we do and let the borrower keep the money and pay everything when they sell the property.

Own and just keep it as a rental longterm/short term rental?

The vast majority of your wealth gain in real estate will be by holding properties long term and the appreciation/principal paydown will slowly but surely help you become wealthy.For 90% plus of people out there who are looking to start, house hacking is the best way to go.

A little cashflow, some tax deductions to kick down the road, long term appreciation and loan paydown.

But if you're really good at it, then you can get a short term rental to perform well.

(Again, ask the bank.)These days I lean toward flips (which is unusual for me) but if the numbers show it cash flows all in with a 7% loan, then sure.