I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

But IRS allows an IRA to be invested in anything except life insurance and collectibles.

You all must agree to the same thing or else you will just end up fighting about what to do.Since your mom doesn't have it in a living trust, I suggest you do that right away.

Do you live nearby?

Don't make your life more complicated than it has to be.

My name is Bryce Miller, and I currently live in the Phoenix valley.

You are a high w2 earner, The house is worth 110k today, you are buying from your grandma for 60k in exchange for free rent for life, upside ARV of 200k.The costs of owning the house will help provide tax relief on your high w2 earnings, you are buying a great chunk of equity that will pay off in the future, and you and your grandma are doing each other solids. 

Businesses are “living” organisms with a life of their own, usually having deep meaning to their owners.  

I did not do a separate criminal background check as I trusted the info from Zillow (Big lesson learned never to trust the Zillow data again in life).

And or they simply dont understand their target renter market as they have never lived in those type of neighborhoods and just have no experience with the life long renter.